Margin Expansion

//Margin Expansion
Margin Expansion 2017-08-17T11:51:22+00:00

This is best illustrated with an Example…suppose you had a company with $10 million in sales and ended up with a pretax profit of $2,500,000, your operating profit margin would be 25 percent. Now supposed at our fictitious $10 million-per-year company, if you were able to go from a 25 percent to a 30 percent operating margin by better managing your expenses and earning $500,000 more profit from that same $10 million of gross revenue.

That 5 percent increase in operating profit margin equals a 20 percent increase in profit :-)

Sound simple? It can be…. That’s where lean design and process automation comes in, and it doesn’t have to involve a million dollar software package. Let us work with your staff and show you how.  Just 10% better can have a dramatic impact on your bottom line.

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