Sales and gross margin

How to increase profit without increasing sales? Managing the weighted average gross margin and the product mix

How to increase profit without increasing sales? Managing the weighted average gross margin and the product mix

Most companies concentrate on increasing sales. Yet a change in the sales structure and in the share of high-margin products can have a far greater effect on the financial result. See how the weighted average gross margin works, why two businesses with the same revenue make different profits, and when Excel is no longer enough for managing profitability. Using an example, I show how consciously managing the product mix can increase profit without winning new customers.