Page 38 - INSIGHT MAGAZINE_Oct2025

ADVERTORIAL

Navigating uncertainty:

Three strategies to boost profit margins

in your business

In today’s volatile economic landscape, businesses face 3. Manage inventory strategically
rising tariffs and increasing operational costs. The traditional
playbook — like cutting costs and raising prices — is no longer Inventory management is often overlooked but plays a critical role
sufficient. Instead, companies must adopt smarter, more strategic in profitability. Overstocking ties up capital and increases storage
approaches to protect and grow their profit margins. costs, while understocking can lead to missed sales. Businesses
“Businesses have to find ways to add value without isolating should adopt data-driven practices to optimize stock levels and
reduce waste.
customers,” says Yohaan Thommy, Partner at MNP and leader of
the Performance Improvement practice. “When you push prices A custom furniture manufacturer, for instance, might analyze
higher, you risk pushing customers away.” sales data to identify popular designs and materials. A just-in-
Thommy recommends three practical strategies to improve time inventory approach — coordinated closely with suppliers
— can ensure materials arrive when needed, reducing overhead,
margins while maintaining customer loyalty: and improving responsiveness.
1. Offer value-added services “Evaluate your inventory to identify where you may be losing
profitability and implement a management method that works
Start by asking: What could make our current offerings more best for you,” says Thommy. “This will enable your business to
valuable to customers? reduce costs and increase its bottom line.”
Imagine a small bakery facing the challenge of increasing
ingredient costs. Instead of relying on current items, it could Strategy over reaction
expand its offerings to include a personalized cake design service While external pressures like tariffs may be beyond your control,
for a variety of celebrations. This value-added service enables the your strategy isn’t. Whether it’s offering value-added services,
business to differentiate itself from its competitors. focusing on high-margin products, or optimizing inventory, these
“These kinds of services build loyalty,” explains Thommy. “You’re approaches can help your business thrive — even in uncertain
not just selling a cake. You’re creating an experience people will times.
come back for.”
2. Focus on high-margin products or services
Curious if your business is resilient
Not all offerings contribute equally to profitability. Businesses enough to weather the storm?
should analyze their offerings to identify and prioritize high-
margin items. This strategic shift can lead to a more efficient Scan the code to take MNP’s Business
allocation of resources and a stronger bottom line. Resilience Assessment today.
When paired with thorough market research, this approach helps
brands better understand customer preferences and position
themselves to better serve niche markets. Take, for example, a
skincare company facing rising ingredient costs. By pivoting
toward an all-natural product line at a premium price point,
the brand not only offsets expenses but enhances its market Yohaan Thommy
positioning. Unique packaging and targeted messaging can A Partner and Performance
further elevate value and customer appeal. Improvement Lead at MNP.
“Once you know what delivers the best return, you can put all
your energy into marketing, selling, and innovating that service or
product,” adds Thommy.

Wherever business takes you MNP.ca

38 Fall 2025 www.cambridgechamber.com