Page 9 - Management Report Matrix Guide
P. 9
ABOUT THIS REPORT
The single most important decision every business will make is pricing. It has the biggest impact on profits and cash flow.
This report shows you which clients are not priced right and should be re-priced, re-scoped or fired.
It also identifies which kinds of clients drive the greatest profits so marketing and sales can focus on prospects that look like them. And, It also shows how well you manage service delivery.
Companies with small profits and cash flow problems often give frequent discounts or have large clients with Gross Margins that are too low to cover costs and generate a profit.
ACTIONS TO TAKE
» Sort the Income column from highest Income to lowest.
» Look to see if your largest Revenue clients provide a reasonable
Gross Profit Margin %.
Before you expand your staff because you have more work than you can handle, call the clients with the lowest profit margins and either:
• Increase fees
• Lower scope or
• Transition them to a new service provider
The difference goes right to your bottom line, and into your bank account.
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