Profit Margins

 As I sit back with my morning coffee

this morning my thoughts moved to margins, profit margins to be exact.

That's where know your numbers comes in handy. I drove my overhead
down as far as possible so I could get better margins. But then a (not so) strange thing happened. Cost creep set in. It always does to every business and system (like government). When you're not looking you get sloppy and a recurring service here, a wasteful buy there and all of a sudden you have a problem.

Back to margins. Where does your company make it's money. Popular opinion says companies make too much profit. I have to believe these people never worked or owned a business or they would know better. When you need supplies, how do you pay for it. When you need to fix a machine how do you pay for it. When you building needs a new roof where does the money come from?

Know your margins and defend them. Things are tight for everyone these days so when needed a little push back is in order. Even 1% could mean your selling at a loss! But sometimes you need to play the game, just remember always know your numbers.

Howard