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In This Issue
Finding Your True Profit

Events
On January 28, I'm hosting a free True Profit Think Tank event in Toronto to discuss strategies to realize your organization's True Profit. Click here to register and for details.

Tools and Resources

Take my assessment that will determine your organization's True Profit.

Click here to order my book, Redefining Operational Excellence: New Strategies for Maximizing Performance and Profits Across the Organization.

 

Edition 1, November 2014
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Andrew Miller

This newsletter will focus on providing insights on how to increase profit margins and performance without making any new capital investment. I call this finding your True Profit.

 

Welcome

Welcome to the first edition of my newest creation, Margin Call. Each month, I will provide new insights on how to increase your organization's profitability and performance. Since I am always looking for new ideas and topics to cover, please don't hesitate to contact me with topics and themes you would like to read more about. Enjoy!!!

Finding Your Organization's True Profit

True Profit is a new way of thinking about your opportunities to increase profit. Understanding your organization's true profit shows you how much money you are leaving on the table.

At one time or another, we've all said to ourselves, "I know there are opportunities to increase profitability and perform better, I just need to find, and capitalize on those opportunities." That's what finding your true profit is. Not only identifying those opportunities, but also capitalizing on them.

True profit is the difference between your organization's current profit and what it's potential profit could be. That potential profit is what I call True Profit. It's the profit you could be making if you were able to capitalize on opportunities.

The way to realize your true profit is by becoming a margin master. Mastering the different profit margin levers and knowing when to pull which lever.

There are nine profit margin levers that you can pull to help  you become a margin master.

  • Pricing and payment terms. Knowing when to increase and decrease prices, using different pricing strategies and payment terms to accelerate revenue collection, and the different pricing mixes you can use.
  • Procurement and managing suppliers. Leveraging the assets you are already buying (or have already bought), reducing costs on commodities, and maximizing value from supplier relationships.
  • Cost of goods sold. Minimizing the cost of making your product, ensuring you maintain the expected level of quality, and minimizing defects and obsolescence.
  • Supply chain optimization. Reducing the number of touch points within the supply chain, ensuring that supply meets demand, and optimizing inventory and distribution strategies.
  • Customer growth and retention. Selling additional products and services to existing customers, retaining those customers, and leveraging them to bring in new customers.
  • Employee empowerment and retention. Attracting and keeping the right people, reducing absenteeism and unproductive turnover, and fostering an environment that provides excellence on the front lines.
  • Brand recognition. Increasing reputation, drawing customers to you, and reducing the cost of new customer acquisition.
  • Operational excellence. Challenging the status quo, effectively on-boarding new customers, using technology to accelerate excellence, and aligning tactics with overall strategy.
  • Innovating and collaborating. Developing new ideas, maximizing the impact of those ideas, and integrating them into the fabric of your organization.

Since you can't master all of these profit margin levers at once, take my True Profit assessment to identify where to start and find out what your organization's True Profit really is.

Please note that we grow our business through referrals and would never be too busy to speak with a friend, family member, acquaintance or colleague if you think we could be of assistance.

Please contact Andrew Miller at 416-480-1336 or visit our website at www.acmconsulting.ca

Please feel free to forward this newsletter to anyone to whom it might be of value.

© Andrew Miller. All rights reserved. 2014.