Are you facing profit erosion in your business? Or want to know what it is so that you can avoid it if you are ever faced with it? Today I explain what profit erosion is and why it matters. I look at the key factors that slowly chip away at profits, including inflation, pricing missteps, over-servicing clients, inefficiencies in staffing, and increased market competition.
Tune in to hear my strategies to help you fight back, like conducting regular pricing reviews, streamlining operations, and keeping up with market trends. By recognising the signs early, you can take proactive steps to protect profitability in today's evolving economy!
Key points in this episode:
Understanding Profit Erosion (00:01:00)
Recognising Profit Erosion (00:04:06)
Time and Inflation (00:06:45)
Pricing Problems (00:08:31)
Over Servicing Clients (00:10:33)
Volume vs. Demand-Based Pricing (00:12:44)
Staffing Issues (00:17:02)
Cash Flow Management (00:19:07)
Business Analysis (00:27:12)
Adjusting Pricing Strategies (00:32:17)
Shifting Target Market (00:34:11)
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