Six Profit Boosting Tips

WHK February 2011 eNewsletter.

Six Profit Boosting Tips

With the Christmas and New Year sales now over, this time of year normally signals lower sales, profit and consequently cashflow for retailers, wholesaler and distributors alike. While it would be great if we could just simply increase our prices in order to improve our financial performance, in reality that is not always possible. To assist you improve your profits and cash flow over these coming months, here are a few tips.

Manage your debtors. Get your invoices out as quickly as possible and follow up outstanding invoices promptly. Consider forwarding your monthly debtor statements by the middle of each month as clients are more likely to pay by the end of that same month.
Manage your stock levels. Don’t order excess stock only to sit in a warehouse. Make sure you regularly review your stock turnover and discount old and obsolete stock in order to move it and get some cash back into the bank. If you are carrying products or services not working for you, consider dropping them.
Use the internet to your advantage. Pay all your bills online and save on cheque fees as well as postage costs. Postage costs can also be reduced by migrating your customers to e-mail and forwarding debtor statements electronically.
Change suppliers. If you are able to source your products cheaper elsewhere, do it. That will immediately improve your gross profit margin.
Review your staffing rosters. Wages and salaries are one of the largest expenses in a business. Make sure all of your staff are productive and monitor their performance.
Benchmark your business. All businesses need to know how they are performing. Benchmarking is an easy and cost effective way to gauge how your business is performing compared to similar businesses within your industry. You can also benchmark your departments to one another and also benchmark individual staff performance.

Armidale Office:
90 Rusden Street, Armidale NSW 2350
T: 02 6776 5100

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17 Lawson Street, Byron Bay NSW 2481
T: 02 6685 7532

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157 Barker Street, Casino NSW 2470
T: 02 6661 2450

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T: 02 6732 9300

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3 Glen Innes Road, Inverell NSW 2360
T: 02 6728 8800

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53 Carrington Street, Lismore NSW 2480
T: 02 6627 3500

Walcha Office:
Fitzroy Street, Walcha NSW 2354
T: 02 6777 4900

Yamba Office:
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T: 02 6603 0250

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T: 02 6618 3550

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3/35 Coast Road, Cabarita Beach NSW 2488
T: 02 6676 3055

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107 West High Street, Coffs Harbour NSW 2450
T: 02 6653 0850

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24 Queen Street, Grafton NSW 2460
T: 02 6640 9200

Kyogle Office:
1 Wyangarie Street, Kyogle NSW 2474
T: 02 6632 0400

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15A Commercial Road, Murwillumbah NSW 2484
T: 02 6672 5577

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39 Hope Street, Warialda NSW 2402
T: 02 6728 9920

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This newsletter is provided by WHK and its member firms and WHK Financial Planning (WHKFP) as an information service only and does not constitute financial product advice. WHK & WHKFP provide no warranty regarding the accuracy or completeness of the information. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice by WHK & WHKFP. Both WHK & WHKFP assume no obligation to update this document after it has been issued. Except for any liability which by law cannot be excluded, WHK & WHKFP, its Directors, employees and agents disclaim all liability (whether in negligence or otherwise) for any error, inaccuracy in, or omission from the information contained in this document or any loss or damage suffered by the recipient or any other person directly or indirectly through relying upon the information.

Section 945A of the Corporations Act requires financial planners to obtain information from clients before making recommendations. Equivalent requirements apply also to accountants in relation to the provision of taxation advice. Accordingly, clients and readers should not act only on the basis of material obtained in this newsletter because the contents are of a general nature and therefore do not take into account each person’s individual circumstances and may be liable to misinterpretation. Do not act upon any of the information contained within this newsletter without first obtaining specific advice from your local WHK Adviser.

WHK Group Pty Ltd ABN 84 006 466 351 and WHK Financial Planning Pty Ltd, holder of Australian Financial Services License No. 238244 ABN 51 060 092 631.

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