Magna Financial Top-5 Tips to Increase Your Profit Margins (1)

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Magna Financial Top-5 Tips to Increase Your
Profit Margins
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About Magna Financial

• Magna Financial is one of best of London based
  company specializing in various financial
  services, for both personal and corporate
  clients. We are provides the Top-5 ways to
  increase your profit margins

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1. Figure Out Your Gross Profit Margin
Prepare some interim accounts to the last
month-end from your accounting software. Get some
bench marking figures from your accountant. How
does yours compare to the industry average?

• Make sure you know your up-to-date, overall
  gross profit margin. Its no good using estimated
  inventory figures or working from the figure in
  your last Annual Financials.

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2. Analyse Your Profit Margins

• This way you can identify both low margin or
  loss-making items and profitable activities or
  products. Then you can stop selling low margin
  lines and focus on profitable margin lines.
  Analyse your overall gross profit margin could be
  deceiving by find out the gross profit margin on
  each of your products and services, and analyse
  your gross margins over different business
  divisions, product categories, suppliers or
  customer categories according to your business.

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3. Use Inventory Systems

• Use the inventory system to keep track of your
  inventory. You will find you have less working
  capital tied in inventory, suffer less theft and
  stock obsolescence, know when youre running out
  of products that are selling well, and know
  exactly how much each of your products cost you
  without wading through old purchase invoices.
  Its easy, and it works well.

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4. Review All Your Prices

• Have you increased your prices to match supplier
  price rises and kept up with the competition?
  Youll review your prices to find that some are
  less price sensitive than others, especially if
  theyre not paying for the bills themselves, e.g.
  government or larger organizations.

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5. Increase Your Prices

• Yes, You know it can be difficult. But often
  business owners are more worried than our
  customers about price, and, lets face it, our
  overheads are going up all the time.
• Its true that you might lose the odd customer,
  but if your margin is 50 percent, a 10 percent
  increase in prices means you can lose 17 percent
  of your customers yet be no worse off!

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Contact Us

• Address 1 Berkeley Street, Mayfair London,
  United Kingdom
• Zip Code W1J 8DJ
• Phone No 44 (0) 2033719966
• Email support_at_magnafinancial.co.uk
• Website magnafinancial.co.uk

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