One of the most common complaints I hear from business owners is that they are working harder and making less. When I question them, they often tell me that they've increased their sales but are still making less money.
Without even looking at their books or asking them any more questions, I know what the problem is—their gross profit margins are dropping.
And few business owners figure out what is happening because they are focusing on sales, not profits!
Every business, no matter the industry, has a gross profit. Gross profit is calculated as your sales price less your total costs of producing and delivering the product or service.
The sad thing is that only a few business owners understand how important managing this number is in order to make a profit. Even fewer know what to do to improve their gross margins.
Watch this video case study illustrating how one business owner almost went bankrupt due to not knowing his true margins, and how we helped him solve the problem.