Increase Profit Margins – Reason 13

Increase Profit Margins – Reason 13

If you’ve been reading the previous posts about mutual benefit, you can’t help but notice that all the reasons will lead to increased profits.  If you haven’t realized the potential profit increases, then you should stop reading this blog and seek help.

When you have everyone in your company, including your vendors and your customers understanding that by helping you, they’ll benefit as well, and therefore, you will have higher profit margins.  Higher profit margins do not translate into lower margins for your providers or higher prices for your customers.  Your margins are achieved by your employees working more efficiently, having less inventory on hand, and collecting more receivables quicker.

You’ll no longer be a commodity or a price based customer for your vendors.  You’ll offer additional value in a variety of ways that will emerge from working within a mutual benefit culture (details in a future blog post).  Your customers won’t have to pay more because you won’t raise your prices to achieve your margin increase, therefore, you will reduce your costs with internal efficiencies.

This value added concept has been sought after for generations by corporations.  It’s as easy for them, as well as a small business, if they are willing to inspect what they expect!

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