Most people think they know their profit margin until they try to price a product for real. You have your materials, your man-hours, and your … Read More

Where does your business spend its money? When it doesn’t buy a product, then you should figure out where it needs to lose money. For … Read More

If you’re like me, you’ve encountered this sales sheet before. One line item price is listed for the product, while a larger discount are available … Read More

Go to your local coffee shop, watch as line gets longer, then notice latte goes up fifty cents in price. Magic? Nope. Economics. That’s what … Read More

From the invoice down to the price tag on a shelf is the span of your business. How wide that spread is will be what … Read More

The fact is most small business owners don’t begin from a formula; they begin from a feeling. They think about something they’d like to produce. … Read More

Net Income On an income statement, bottom line is rarely the whole truth. It’s a well-constructed number, driven by tax strategies, financing decisions, and accounting … Read More

For example, you can make a lot of money and watch your business fail. Why? Owners is focused on dollars sold (total sales) rather then … Read More

Revenue, on its own, doesn’t tell you much about whether a company is healthy. If two companies earns the same amount in sales, but one … Read More

Concentration sounds like some theoretical concept from academia…until you’re trying to quantify it. The Herfindahl Index makes you view market shares not just as a … Read More