Margin Magic: Four Steps to Building Greater Profit

Ensure that you’ve enclosed shipping instructions for vendors, and charge them back if they don’t abide by your rules. If you allow vendors to pay freight and add it to the invoice, this can become a profit center for them due to significant markup and administrative fees.

Following a few of these examples should help you to improve your overall margin dollars and percentages as well as put you in good graces with your company’s CFO. Remember, if your sales are $10 million and you improve overall margin percentage by only 1 percent, you add $100,000 to the bottom line.