"We got up 2.5 to 3pts. Got it right at 30% margin and we've held it there since early to mid 2022. And we're still at that and going strong. Like you said, 2022 was our best year ever!" ~ Charlie Kennedy, Co-owner Kennedy Office Supply

There are other companies out there that say, “use our plan and you’ll earn a 28% margin”.  But is this true for your company and your customers buying habits?  Many times, we find what works at one company doesn’t work well for another because customer buying habits at every company are different.  Even within the same company, when customers are divided into groups, the same plan will likely produce two different margins.  At Top Line Profits, we use your previous 12 months of purchases to create a model that gives you an understanding of the progress you will make. 

We have plans available for companies that want to grow their margin and for those who just want to maintain their current margin.  Together we set a margin goal and then work with you using your company’s data to create a sustainable margin model to increase and/or maintain your company’s margins.   We use industry standard to data to compare your pricing structures, find places where changes should be made and then model those changes against your previous 12 months of purchases.  Individual customer buying habits tend to be very consistent within a company and using your previous 12 months of sales to build a model allows you to see how any suggested changes will likely impact your margin before changes are implemented.  While it would be nice to say here’s exactly how we improve margin for every company, the point is every company is different and as a company owner you need to know what works for you and your customers.  We start by asking questions to understand your customer base and current pricing structure to get to know your company.  These questions help give us a better understanding of your overall pricing philosophy so we can build a better model and give suggestions. 

Consider the table below. If you have $10,000,000 in yearly top line sales (gross sales), a 2-point margin increase would be worth an extra $200,000 of profit per year. Sustaining this margin increase means in 5 years your company will have made an extra $1,000,000 in profit. Looking at the table how much extra profit would your company make by increasing your margins? Let us help you leverage your data analytics to increase your profitability through a sustainable margin plan.