Memecast #48: Small Improvement

<p>I'm going to try to do a little math with you on this podcast, and imagine we have a company that normally makes a hundred million dollars in revenue. They've got costs of $90 million all in. So, they're making $10 million in profit. And that's not unrepresentative, that seems pretty reasonable for a lot of companies.</p> <p>But what happens if we could increase or improve our pricing by 1%? So instead of a hundred million, what if we got 101 million in revenue? Our costs don't really change so instead of 10 million in profit, now we're making 11 million in profit. That 1 million in improved pricing went straight to the bottom line. And in the example I just gave you then, a 1% improvement in pricing can lead to a 10% increase in profitability.</p> <p>This is huge.</p> <p>We should be looking for small places where we can increase pricing because every dollar, when we improve our pricing, goes straight to profitability.</p> <p>We hope you enjoyed this memecast. If you have any questions or feedback, please email me <a href= "mailto:mark@impactpricing.com">mark@impactpricing.com</a>.</p> <p>Now go make an impact.</p> <p> </p> <p><strong>Connect with Mark Stiving: </strong></p> <ul> <li>Email: mark@impactpricing.com</li> <li>LinkedIn: <a href= "https://www.linkedin.com/in/stiving/">https://www.linkedin.com/in/stiving/</a></li> </ul>