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Understanding what impacts profit and how to control it

With the economy in its present condition, many companies are concerned about their financial health – profits. And they should be, as the economy is likely to continue to be slow in recovering. But your profitability can be improved now. Would it surprise you to learn that even today 25% to 30% of your gross margin dollars are wasted!? Both companies and researchers continue to find that many companies incur significant costs that could be avoided and loose sales due to inefficient systems.

It is unlikely that a company can eliminate all of the waste in their systems, but what if you could reduce costs by just 10% of your gross margin dollars. What would that do to your bottom line? We work with companies to evaluate their financial health and how they can improve their profitability. Some of the areas we help companies to improve upon include:

  • Cash flow: the most common cause for companies to go out of business, can also result in significant costs.
  • Profit enhancement: there are a number of ways companies can reduce operating costs while improving customer service.
  • Margin erosion: as customers continue to squeeze, margins continue to be reduced - there are several ways to stop this erosion.
  • Account profitability: most suppliers are holding on to customers that generate no profits or negative profits.
  • Cost of sales: sales service should be based on profit contribution – you cannot give every customer equal treatment.
  • Cost of Goods Sold: suppliers want the same thing as you: more sales and lower costs. Working with key suppliers on their goals can result in significant savings to you.
  • Cost of doing business: internal costs and waste results in lost sales and a higher cost of doing business.

Every service we offer comes down to this one focal point: how to manage for greater profit. It is the foundation of our company to help our clients achieve this goal. If you are looking to improve your profits, let us help you.

For more information about this or other products/services contact us at:
Underhill & Associates
PO Box 35895
Tulsa, OK 74153
Phone: 918-404-8085
Fax: 918-494-3718
Email: underhill@underhill-assoc.com