Are You Profitable?
Are You Profitable?
Do you even know?
It is interesting how often a salesperson will brag about how big a contract that they just sold is but never mention how much profit they make. Often, it’s because the sales number is bigger than the profit number and thus more impressive; but, more likely, the salesperson may not even know how much the profit was. Sadly, if you don’t know if you’ve made a profit, who’s to even say that you did?
Profit is like the applause one gets for successfully negotiating a sale. You’re supposed to have a profit and if you don’t have one, your business will not be around for long. Some people feel guilty about charging more than a job costs but the reality is that if you do not do this, you’re not in sales and you probably won’t be in business.
A successful employer has a responsibility to the stakeholders to make sure that sales are profitable and that the business can be sustained so that employees can enjoy a living from their contributions. If you don’t know how to calculate your profits, find someone who does. A business coach or someone who has been in your line of work for a long time should be able to give you some accurate guidelines.
Understand that a business can survive longer with no business that it can with unprofitable business. Unless you take steps to make sure that you are profitable, you will not have a business to run. Remember, in all industries you will have high-end companies that charge significantly more than the other competition (like Rolls-Royce, Harley-Davidson, Learjet, and the Ritz-Carlton.) These businesses pride themselves on high profitability and back it up with quality and service. There’s no reason that you can’t do the same in your industry.
“Sales are for vanity. Profits are for sanity.” – Source unknown
(This excerpt is taken from my seminar entitled Survive and Thrive III: Increasing Cash Flow, Sales, and Profits.) I encourage you to click here to register for my exclusive live Zoom Survive and Thrive III: Increasing Cash Flow, Sales, and Profits seminar on Thursday, October 6, 2022 from 9 AM to 12 noon Eastern Standard Time.
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