How we can add 137% to a client’s profit

How we can add 137% to a client’s profit

But first, let me address the process and why we are different.

Firstly, in our annual general meetings with business clients, we work through a series of high level performance analysis reports (some of those reports are used in conjunction with other tools for our more regular meetings).

Secondly, we have regular discussions with our clients (even if only briefly). With cloud accounting, we know what is happening now and can identify and address trends as they occur.  Analysis and meetings keep our clients moving towards their goals.

Thirdly, our focus is your long term success and your security. Our work and focus does not end with the preparation of an annual Tax Return.

So how did we work out how to add 137% to a client’s profit?

• Firstly our analysis tools identified that small 1% changes in key areas would deliver a profit of 30%. What areas – whilst straight forward, that will be explored in another blog.A 1% change is not difficult to implement for most businesses. A 30% uplift in profit (with a corresponding improvement in cash flow) is a big reward for small effort.
• We then identified that a 5% price increase on its own will add 68% to the bottom line. In our client’s case this should not be difficult as they haven’t reviewed their prices for a little while.
• We then explored a 10% price increase. Our software revealed that a 10% price increase would increase the bottom line by 137%.
• We then, and here is the key to all this, our software revealed what their fall back positon will be. Our software determined that they would have to lose more 24% of their existing customers to make less than under the existing price structure. Our client sells a unique and quality personal product that people buy on emotion and are guided more by outcomes & quality than they are on price. They might lose some customers, but they will not lose anything like one out of every four customers (which they will be tracking anyway).
• Even if they lost 10% of their customers in response to a 10% price increase they would still improve their profit by 80%. 80% more for doing 10% less – sounds attractive doesn’t it?

Our modelling software takes the guess work out of decisions. Such big decisions can be taken confidently.  Our client can now review their prices confident of the outcome.  They will not be lying awake at night worrying nor will they procrastinate or not make any change at all.

And if that isn’t enough!

Based off a likely maintainable business profits multiplier, their business will be worth up to $240,000 more.

We welcome the opportunity to discuss with you how we can help you to improve your business. Our initial meeting is free of cost or obligation.  Call us now on 9899 7511.

At MRS, we will spend today planning for your success.