Costs/Margin, Management, Sales, Success

Measuring Profitability

I started working with a client that has been in business for several years.  As with all new clients we reviewed their margins.  What I found wasn’t unusual.  The pricing and quoting process were appropriate.  However, once the sale was complete the margins were often very tight.

In this case we educated the sales team to calculate profitability and shifted their incentives to reward profitability. The result was improved gross margin of 6% over a six month period.

Sales incentives are a powerful tool for improved profitability.

YOUR CHALLENGE:  Take a look at your pricing tools and quoting process.  If it is limited to one person, prone to errors or time consuming, look for options to simplify and build quality into the process.


If you would like further information or you have any questions about this blog, you can email me at or call 847-739-3079.

Please visit to register for our complimentary workshop, 6 Steps to a Great Business, and let’s work together to help your business grow.


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