Pricing sets the profitability table for a business. If you get it wrong, no amount of cost-cutting will be able to make up the difference. I recently worked with a client who had a gross-margin problem. They were pricing to compete on cost, yet they offered a high-value solution to their market. Their costs were…
It sounds contradictory, but there’s an important business lesson behind it: breakeven isn’t the finish line—it’s the launch point for profitability. When launching a new product, division, or business, the first objective should be to reach breakeven as quickly as possible. Once fixed overhead is covered, incremental sales can contribute disproportionately to the bottom line. That…
I asked a client if they had a financial engine and if it was running well. They looked at me with a bit of a puzzled look, questioning what I was asking. The reason I asked the question is that they had one line of business, but they were looking to expand it and start…