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Cash Cow or Sacred Cow?
Getting down to the nitty gritty about a client's 'best sellers' is one of the first things I jump into when I start a new project. More often than not, those 'best sellers' are the source of more problems than anyone would expect. How can that be? It's the biggest seller (which is easy to prove with revenues), the cash cow, sacred cow, the product that delivers major corporate differentiation. Right? Sometimes it is. But more often it's not. It may generate the most revenue - but you have to look deeper, much deeper, to find out how the product is impacting your business.

Other contribution margin Related Articles

Finance Terms Made Simple
Do terms like "gross margin" and "deferral of taxes" scare you? If so, then this short reference guide is what you're looking for!
The collective buying power of a franchise
The collective buying power of a franchisor results in getting good discounts for the raw materials. That, in turn, boosts up the profit margin of the franchisees.
World Class
There is an emerging new World Class level of business where social contribution is the most direct path to profit.
“People”…The Secret Ingredient to Success
In simple terms, you can measure your business success by how well you get customers, keep customers, and the efficiency of your operations. Many companies measure their success by revenues, income and other traditional accounting yardsticks. The problem is that the accounting approach measures how you did but not how you should have done. For example, take a company that grew 20% last year, and had $10 million in revenue. Its management team was weak, so it lost an additional 20% growth, missed out on another 5% in net margin, and had unnecessary turnover of 10% in client base. So this same company (assuming a 10% net margin) could have seen another $800K added to their bottom line. The one secret ingredient was “people.”
It's the Little Things!
The next time we start cutting price to match the competition, slimming services to make up for the lost margin - maybe we should think again.
Can you satisfy these customer segments or who wants You?
Not every segment can be profitable to you. Not every segment is worth the risk. You must remember what allows you to make margin and not try to be someone that you are not. You may want to look at it this way, Who want's you?
ARC Loan in Jeopardy (SBA)?
Recent news suggests that the ARC is not doing well. Maybe you know this firsthand because you applied for the ARC loan? It has been speculated that the ARC is not doing well due to the risk taken on by the banks with little profit margin to gain.

How Gross is my Margin?
The article provides insight into the value for business owners and financial managers to understand gross margin and how it affects overall profits and business risk .
Defending Profit Margins
Each percentage point of gross profit margin you lose requires a 4% volume growth just to keep profit steady. A five point increase in your profit margin is the equivilent to a 20% increase in sales. A five point increase in your profit margin can equal a 50% boost to your bottom line profit. How do you communicate the value you provide to the customer so that you are not seen as a commodity and therefore maintain the profit margin you need to grow your business.
Easy Law Practice Management Tips For Boosting Your Firm\'s Profits
Law practice management techniques let your law firm improve profits even in a bad economy. Legal billing software helps practices track key metrics such as realization, leverage and margin.
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