Episode A3.006 What are your most and least profitable products and services?

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Introduction:
Good morning, good afternoon, or good evening! Thank you so much for joining me today, on a MONDAY! Ugh! My name is Kasfia Rashid, but you can call me Kash, everyone does! (Even my mom) I am so super excited to be a part of the IBGR Network’s talent pool! I work to repair the gap between small business owners and their financial records. My love of accounting runs deep, like really deep! I believe that accounting is the language of business and if all business owners could tap into it, they would all be able to grow expentionally, quickly, and often with less stress put on the business owner. 

Your products and services are a basic building block of your business, and the start of every sales call. No matter what type of business you have, or what industry you are in, as long as you are a for-profit company, you are selling SOMETHING to SOMEONE. This episode is focused on finding the most and least profitable products and services you offer- the Something. 

Show Objectives:

Dispel the myth that Quantity is better than Quality
How to leverage your Accounting system to find your largest money makers
Why it’s NECESSARY to trim the fat, and how it leads to explosive profits. 

Key Issues

1. The “more is better” trap. Spoiler alert * Not always….
   
2. Which reports from your accounting system (or bookkeeper) do you need, and how to read them! 
   
3. Where to trim, how much?!
   
4. How to make the most of what’s left over. 
   
5. Did someone say “Pandemic Pivot”?
   

What You Need to Do

1. List out your products and services in HIGH detail. Include:
   
   1. The cost of any products you buy for resale purposes/to build a final for sale product including shipping!
      
   2. Time to create / spent on client 
      
   3. Final sale price
      
   4. Quantity sold
      
   5. Time to acquire / sell 
      
   6. Marketing / Other direct maintenance cost
      

1. Time / Cost analysis: Use the above information to determine an average cost per hour / product.
   
2. Cut the bottom 20%! Done, gone, CANCELED! 
   
3. Regroup and Refocus on top 5% 
   

Shows
Previous: Episode A3.005 What are the results from Value Mapping the variable cost processes? 

Next: Episode A3.007 Who are your most and least profitable customers?

Written by Kasfia Rashid
“Money Matters with Kash the Bookkeeper”

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