Why Strong Profit Margins Matter More Than Sales in Your Product Business
Let’s be honest. Selling more doesn’t always mean you’re making more. In this episode of the Resilient Retail Game Plan podcast I share why strong profit margins are the foundation of a sustainable product business.
I’ll walk you through how to calculate your real margins how to spot the most common mistakes including ones I’ve seen big retailers make and what you can do to improve your pricing without sacrificing sales.
In this episode I cover:
- The difference between 'in' margin and 'out' margin
- How discounting impacts your bottom line
- How often I recommend reviewing your prices
- Why your top sellers might be hurting your profits
- My practical tips for protecting margin and growing sustainably
If you’ve ever looked at your sales numbers and thought "it still feels like I’m not earning enough" this is the episode for you.
Tell me what hit home:
DM @resilientretailclub on Instagram and tell me what resonated most with you.
Please rate, follow, and share the Resilient Retail Club podcast in your app. It all helps us grow the show!
Useful links:
My freebie: http://www.resilientretailclub.com/freebie
My website: https://www.resilientretailclub.com/podcast
My Forbes page: https://www.forbes.com/sites/catherineerdly/
Timestamped summary:
00:00 Understanding Profit Margins
03:46 Why Profit Margins Are Key to Business Success
09:25 Calculate Costs for Profit Clarity
12:06 Minimise Discounts, Maximise Margins
15:31 Ideal Profit Margin Guidelines
17:47 Optimise Profits: Check Best Sellers
21:18 Monthly Margin Management Insights
Mentioned in this episode:
Stock doctor
Popular Podcasts
CrimeLess: Hillbilly Heist
It’s 1996 in rural North Carolina, and an oddball crew makes history when they pull off America’s third largest cash heist. But it’s all downhill from there. Join host Johnny Knoxville as he unspools a wild and woolly tale about a group of regular ‘ol folks who risked it all for a chance at a better life. CrimeLess: Hillbilly Heist answers the question: what would you do with 17.3 million dollars? The answer includes diamond rings, mansions, velvet Elvis paintings, plus a run for the border, murder-for-hire-plots, and FBI busts.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.