Knowing which products are selling below their variable cost is critical to improving profitability. But there may be a strategic reason to continue selling the unprofitable products. The key is to know the “why” and make informed decisions to ensure the loss leaders aren’t loss bleeders.
We lose money on every sale but we make up for it in volume” is an old and tired manufacturing joke. And it is no laughing matter if it is your company. Knowing your variable costs and gross margin is necessary, but not sufficient. Knowing your gross profit by SKU is a key to uncovering hidden profits within your business.
Is $1,000 a lot of money? The answer depends on the context. To a 5 year old, it is a king’s ransom. To a $50m manufacturer, it’s 3 minutes worth of revenue. The context matters. In this month’s video, we introduce a variable cost line to our scatter plot chart to add context to our analysis of product and customer profitability. Not all revenue is good revenue. Let the data lead you to the hidden opportunities to improve your profitability.
Managing strictly from a spreadsheet or a P&L statement is SOOO 20th century. This month’s video shows that data visualization is easier than you think and makes the consumption and digestion of your company’s performance more intuitive. Let the data lead you to the hidden opportunities to improve your profitability.
What’s your number? This is not a cheesy pick-up line or an inquiry about your Sleep Number bed setting. It is a serious question. The number we are referring to is gross margin. Margin erosion is a silent killer. It is an insidious ailment that, on the surface, doesn’t seem like a big deal. After …
The IRS is planning to push back the deadline for filing tax returns by about one month, originally thought to be May 15, from the usual April 15, CNBC confirmed. But because May 15 falls on a Saturday, the final deadline for filers is likely to be the following Monday, May 17.
The Consolidated Appropriations Act of 2021 (CAA), signed into law on December 27, 2020, significantly enhanced and extended the Employee Retention Credit (ERC), providing further federal financial relief to businesses impacted by the pandemic. by MAP Sponsor: Stephano Slack, Accountants and Advisors
Many think the research tax credit does not apply because they don’t conduct research in a traditional sense, but it can actually be applied for many daily activities.
PPP Forgiveness Application Update: Loans of $50,000 & Less On Thursday October 9, 2020, SBA announced that small businesses with Paycheck Protection loans of $50,000 or less can now use a streamlined application to apply for their loan forgiveness.
You are cordially invited to: Before, During and After the Exit -“Exiting your business” — a special event for business owners THURSDAY, OCTOBER 29 4:00 p.m. – 5:00 p.m. Click here to register by October 27, 2020. About the Event: Your business has always been a big part of you. How would you even begin the …
Key 941 Changes You or your payroll provider will be looking at a new quarterly Form 941 to report your federal payroll taxes to the IRS. There are 18 added lines + an additional worksheet in order to handle all of the changes. Below are the key highlights as noted in the revised 941 instructions…
PA Small Businesses of 25 employees or Less: COVID-19 Assistance Program Available Now Pennsylvania has now opened the first application window for the “COVID-10 Relief Pennsylvania Statewide Small Business Assistance Program” which will provide $225 million in grants ranging from $5,000 to $50,000 to small businesses that have been economically impacted by COVID-19. Here are …
PA Small Businesses of 25 employees or Less: COVID-19 Assistance Program Available Now Read More »
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