{"id":6176,"date":"2014-08-20T16:50:00","date_gmt":"2014-08-20T16:50:00","guid":{"rendered":"https:\/\/websitedemonow.com\/profitpro\/how-to-increase-your-gross-margins\/"},"modified":"2022-06-09T05:40:23","modified_gmt":"2022-06-09T05:40:23","slug":"how-to-increase-your-gross-margins","status":"publish","type":"post","link":"https:\/\/websitedemonow.com\/profitpro\/how-to-increase-your-gross-margins\/","title":{"rendered":"What Is Process Mapping &#038; Why It&#8217;s Important For Your Business"},"content":{"rendered":"<div class=\"hs-migrated-cms-post\">\n<p>In today\u2019s economic climate a business cannot simply sell its way out of a profit problem. The economy has caused demand to decline and competition is responding by cutting prices in an effort to increase their sales.\u00a0 Unfortunately, excessive price cutting can be disastrous to everyone\u2019s profits.<\/p>\n<p><!--more--><\/p>\n<p>Improving gross margins is a powerful method to improve profits.\u00a0Holt Marketing &amp; Management Services has developed a Gross Margin Matrix that offers a proactive systems approach to achieving that goal. To illustrate, a $1,000,000 operation that can increase its gross margin rate by 3% will add $30,000 to their gross margins and a $20,000,000 company will add $600,000 to their gross margins.<\/p>\n<p><img decoding=\"async\" class=\"lazyload size-full wp-image-7385 alignright\" src=\"https:\/\/websitedemonow.com\/profitpro\/wp-content\/uploads\/2022\/06\/grossmarginblogfinal.jpg\" data-orig-src=\"https:\/\/websitedemonow.com\/profitpro\/wp-content\/uploads\/2022\/06\/grossmarginblogfinal.jpg\" alt=\"\" width=\"316\" height=\"323\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%27316%27%20height%3D%27323%27%20viewBox%3D%270%200%20316%20323%27%3E%3Crect%20width%3D%27316%27%20height%3D%27323%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-srcset=\"https:\/\/websitedemonow.com\/profitpro\/wp-content\/uploads\/2022\/06\/grossmarginblogfinal-66x66.jpg 66w, https:\/\/websitedemonow.com\/profitpro\/wp-content\/uploads\/2022\/06\/grossmarginblogfinal-200x204.jpg 200w, https:\/\/websitedemonow.com\/profitpro\/wp-content\/uploads\/2022\/06\/grossmarginblogfinal-293x300.jpg 293w, https:\/\/websitedemonow.com\/profitpro\/wp-content\/uploads\/2022\/06\/grossmarginblogfinal.jpg 316w\" data-sizes=\"auto\" data-orig-sizes=\"(max-width: 316px) 100vw, 316px\" \/>The Gross Margin Matrix, created by Holt, incorporates key indicators that impact gross margins into a systemized profit improvement plan.<\/p>\n<p>Five key indicators that drive gross margins:<\/p>\n<ul>\n<li>Customer<\/li>\n<li>Product\/Project Mix<\/li>\n<li>Pricing Policy<\/li>\n<li>Sales Strategy<\/li>\n<li>Advertising &amp; Merchandising<\/li>\n<\/ul>\n<p>Each of these key indicators of gross profit must have goals, measurements, and training to implement behind it.<\/p>\n<p>A\u00a0gross margin planning system is a sustainable process that has synergy, meaning that utilizing all the components and produce results that are greater than the sum of their parts. The objective of the sample gross margin matrix is to increase gross margin goals by 5% to 10%.<\/p>\n<p>The overall steps to complete the gross margin matrix are:<\/p>\n<ol>\n<li>Plot all categories, products, and projects which have high gross margin dollars or high margin percentages.<\/li>\n<li>Develop a sales system that focuses on increasing sales of what is listed in Step 1.<\/li>\n<li>Identify areas where prices can be increased without losing sales. (See our blog: <a title=\"Help Your Customer Cut Costs and Increase Your Profits\" href=\"http:\/\/www.marketingholt.com\/blog\/bid\/112734\/Help-Your-Customer-Cut-Costs-and-Increase-Your-Profits\" target=\"_self\" rel=\"noopener\">Help Your Customer Cut Costs and Increase Your Profits<\/a>)<\/li>\n<li>Redesign marketing and sales to attract customers to these services or products.<\/li>\n<\/ol>\n<p><strong>Example:<\/strong><\/p>\n<table class=\"text\" style=\"width: 423px; height: 157px;\" border=\"0\" cellpadding=\"1\" align=\"left\">\n<tbody>\n<tr>\n<td><strong><span style=\"text-decoration: underline;\">Current<\/span><\/strong><\/td>\n<td><\/td>\n<td>\u00a0<strong><span style=\"text-decoration: underline;\">New Matrix Change Results<\/span><\/strong><\/td>\n<\/tr>\n<tr>\n<td>\u00a0$1,000,000<\/td>\n<td>\u00a0Sales<\/td>\n<td>\u00a0$1,000,000<\/td>\n<\/tr>\n<tr>\n<td>\u00a040%<\/td>\n<td>\u00a0Gross Margin % which is +7.5%<strong>*<\/strong><\/td>\n<td>\u00a043%<\/td>\n<\/tr>\n<tr>\n<td>\u00a0$400,000<\/td>\n<td>\u00a0Gross Margin $<\/td>\n<td>\u00a0$430,000<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<span style=\"text-decoration: underline;\">$370,000<br \/>\n<\/span><\/td>\n<td>\u00a0<span style=\"text-decoration: underline;\">37% Overhead<\/span><\/td>\n<td>\u00a0<span style=\"text-decoration: underline;\">$370,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><strong>$30,000<\/strong><\/td>\n<td>\u00a0<strong>Profit<\/strong><\/td>\n<td>\u00a0<strong>$60,000<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong><br \/>\n*<\/strong>($430,000 \/ $400,000 = $30,000 or 7.5% increase in gross profit)<\/p>\n<p style=\"text-align: left;\" align=\"right\">And by following the strategy laid out in the Matrix guide and video to harness its synergy for growth, business managers or owners have the knowledge at their fingertips to go forward and increase their profits.<\/p>\n<p style=\"text-align: left;\" align=\"right\"><div class=\"fusion-button-wrapper\"><style>.fusion-body .fusion-button.button-1{border-radius:10px 10px 10px 10px;}<\/style><a class=\"fusion-button button-flat fusion-button-default-size button-default button-1 fusion-button-default-span fusion-button-default-type cta\" target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.marketingholt.com\"><span class=\"fusion-button-text\">Let&#8217;s Talk Brass Tacks! Contact Us!<\/span><\/a><\/div><\/p>\n<p style=\"text-align: center;\"><em><strong>If you have further questions or would like to have someone from Holt Marketing Services walk you through the Gross Margin Matrix guide, then give us a call at 989.791.2475 or <a title=\"contact us\" href=\"\/contact\/\" target=\"_self\" rel=\"noopener\">contact us<\/a>. There is no obligation or charge.<\/strong><\/em><\/p>\n<div style=\"text-align: center;\"><\/div>\n<h2 style=\"text-align: center;\"><\/h2>\n<h2 style=\"text-align: center;\">Or<\/h2>\n<div style=\"text-align: center;\"><div class=\"fusion-button-wrapper\"><style>.fusion-body .fusion-button.button-2{border-radius:10px 10px 10px 10px;}<\/style><a class=\"fusion-button button-flat fusion-button-default-size button-default button-2 fusion-button-default-span fusion-button-default-type cta\" target=\"_blank\" rel=\"noopener noreferrer\" href=\"#\"><span class=\"fusion-button-text\">watch our video to learn to build your margins<\/span><\/a><\/div><\/div>\n<p><strong>You can also check out our other blogs on how to increase gross margins or gross profits here:<\/strong><\/p>\n<h3 class=\"title\"><span style=\"color: #0000ff;\"><a title=\"The Definitive Guide to Increasing Your Gross Margins\" href=\"http:\/\/www.marketingholt.com\/blog\/bid\/113669\/The-Definitive-Guide-to-Increasing-Your-Gross-Margins\"><span style=\"color: #0000ff;\">The Definitive Guide to Increasing Your Gross Margins<\/span><\/a><\/span><\/h3>\n<h3 class=\"title\"><span style=\"color: #008000;\"><a title=\"Find your Synergy Factor in Finance and Increase Profits Dramatically\" href=\"http:\/\/www.marketingholt.com\/blog\/bid\/113920\/Find-your-Synergy-Factor-in-Finance-and-Increase-Profits-Dramatically\"><span style=\"color: #008000;\">Find your Synergy Factor in Finance and Increase Profits Dramatically<\/span><\/a><\/span><\/h3>\n<h3 class=\"title\"><span style=\"color: #0000ff;\"><a title=\"The Gross Margin Matrix \u2013 Avoiding System Failure\" href=\"http:\/\/www.marketingholt.com\/blog\/bid\/112069\/The-Gross-Margin-Matrix-Avoiding-System-Failure\"><span style=\"color: #0000ff;\">The Gross Margin Matrix \u2013 Avoiding System Failure<\/span><\/a><\/span><\/h3>\n<p style=\"text-align: center;\">We are offering a Gross Margin Ratio Webinar for those interested in improving their Gross Profit Margins. Click the button below to sign up for notifications:<\/p>\n<p style=\"text-align: center;\"><div class=\"fusion-button-wrapper\"><style>.fusion-body .fusion-button.button-3{border-radius:10px 10px 10px 10px;}<\/style><a class=\"fusion-button button-flat fusion-button-default-size button-default button-3 fusion-button-default-span fusion-button-default-type cta\" target=\"_blank\" rel=\"noopener noreferrer\" href=\"#\"><span class=\"fusion-button-text\">Click here to learn more or register for the Webinar and receive a special invitation and bonus content!<\/span><\/a><\/div><\/p>\n<p style=\"text-align: center;\"><strong>If you like what you read here, please subscribe by clicking the button below:<\/strong><\/p>\n<div class=\"fusion-button-wrapper\"><style>.fusion-body .fusion-button.button-4{border-radius:10px 10px 10px 10px;}<\/style><a class=\"fusion-button button-flat fusion-button-default-size button-default button-4 fusion-button-default-span fusion-button-default-type cta\" target=\"_blank\" rel=\"noopener noreferrer\" href=\"#\"><span class=\"fusion-button-text\">Please subscribe if you like what you read!<\/span><\/a><\/div>\n<p><strong><span style=\"color: #0000ff;\">We would love for you to visit us:<em>\u00a0 <\/em><\/span><\/strong><strong><a href=\"https:\/\/www.facebook.com\/gary.holt.9277\" target=\"_self\" rel=\"noopener\"><img class=\"lazyload\" decoding=\"async\" id=\"img-1411160192123\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%2738%27%20height%3D%2738%27%20viewBox%3D%270%200%2038%2038%27%3E%3Crect%20width%3D%2738%27%20height%3D%2738%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-orig-src=\"\/\/cdn2.hubspot.net\/hub\/46581\/file-1665775885-png\/images\/facebooklogo.png\" alt=\"facebooklogo\" width=\"38\" height=\"38\" border=\"0\" \/><\/a><\/strong>\u00a0 <a href=\"https:\/\/www.linkedin.com\/in\/marketingholt\" target=\"_self\" rel=\"noopener\"><img class=\"lazyload\" decoding=\"async\" id=\"img-1411160236235\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%2741%27%20height%3D%2741%27%20viewBox%3D%270%200%2041%2041%27%3E%3Crect%20width%3D%2741%27%20height%3D%2741%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-orig-src=\"\/\/cdn2.hubspot.net\/hub\/46581\/file-1662339204-png\/images\/linkedinlogo.png\" alt=\"LinkedInLogo\" width=\"41\" height=\"41\" border=\"0\" \/><\/a>\u00a0 <a href=\"https:\/\/twitter.com\/HoltMarketing\" target=\"_self\" rel=\"noopener\"><img class=\"lazyload\" decoding=\"async\" id=\"img-1411160420034\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%2738%27%20height%3D%2738%27%20viewBox%3D%270%200%2038%2038%27%3E%3Crect%20width%3D%2738%27%20height%3D%2738%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-orig-src=\"\/\/cdn2.hubspot.net\/hub\/46581\/file-1665252097-png\/images\/twitterb.png\" alt=\"twitter\" width=\"38\" height=\"38\" border=\"0\" \/><\/a><\/p>\n<p>*Editor&#8217;s Note: This is a previously published blog. Due to the popularity and importance of the content, I felt it was necessary to recirculate for those who missed it.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In today\u2019s economic climate a business cannot simply sell its [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":7385,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[647,648,738],"class_list":["post-6176","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-brand-awareness","tag-customer-service","tag-marketing-strategies"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is Process Mapping &amp; Why It&#039;s Important For Your Business |<\/title>\n<meta name=\"description\" content=\"Learn how to focus on your top performing products and services to increase your margins and improve your bottom line.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is Process Mapping &amp; 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