Profit margin is a measure of your profitability. The figure varies from business to business but is a pretty good indicator of how successful you are. As author Doug Hall says, “If your profit margins aren’t rising, chances are your company isn’t thriving.” With retail, some of the biggest brands commonly achieve profit margins of 50-60%. In 2017, Ted Baker had a profit margin of 60%, Inditex 57%, and M&S 56%.
Topics: Profit Margins
If you’re having trouble coming up with new ideas to increase eCommerce sales, here are 10 ways to generate more sales.
According to Tim Walker writing for The Guardian, the days of fixed pricing appear to be coming to an end. The traditional concept of RRP or ticket price has gradually been eroded and now there are many exciting opportunities for dynamic, personalised pricing models.
Topics: Smarter Pricing
Price management and optimisation company, BlackCurve, has strengthened its leadership team with the appointment of software entrepreneur Martin Fincham as Chairman and Chee Wong, the former COO of Shazam, as Technical Advisor.
Since raising the seed round, BlackCurve has continued to bolster its team, expand its client base and make strong progress building out its product, including key integrations with BigCommerce, Magento and Shopify.
No matter what product or service you sell, the price you charge your customers or clients will have a direct impact on the success of your business.
A truly effective pricing strategy should:
- Communicate your value
- Position you in the market
- Reinforce your revenue strategy
- Allow you to invest in continuing innovation
Topics: Pricing Strategy
In our latest pricing video, Philip Huthwaite shares why pricing automation is becoming more common in businesses, what tools to use and how companies can automate their pricing operations.
Warren Buffet was not wrong when he stated "The single most important decision in evaluating a business is pricing power."
Effectively controlling your pricing does give you a definite advantage in the marketplace. However, if you are still using spreadsheets to manage your prices, a method which is outmoded, and possibly even foolhardy, the future growth and prosperity of your business could be in jeopardy.
Getting paid on time is one of the most frustrating issues for businesses. Customers are never overjoyed to part with their money. But if they are happy with your products and service they are much more likely to pay within the negotiated time frame.
Over the years, there have been many factors that have impacted and ultimately shaped the way we do our weekly food shop. Gone are the days of walking down a local high street visiting the butcher, fishmonger, and greengrocer. Supermarkets changed all of that. And have continued to change the way we shop since their emergence.
With dynamic pricing infiltrating so many aspects of our lives, it is less surprising each time a new industry joins the bandwagon.
Given the popularity of dynamic pricing in travel costs (read more with Pricing Strategies for Tour Operators and Online Travel Agents), it is not a shock that hospitality as a whole appears to be looking at stirring up how they price their businesses.
This is true of hotels and also restaurants, the newest thread of hospitality to join in with dynamic pricing in a bid to increase profits and sustainability.