--- title: THE 10 WAYS TO LIFT YOUR MARGIN description: "Improvements can always be made at the margin. Small tweaks to your processes or systems can make a massive difference to the end result. It’s the same with your business margin – a 1% increase in your gross margin on $500,000 of sales is an extra $5,000 on your bottom line. \n\nThe best part about improving your margin is that you increase your profit without needing to lift your sales.\n\nHere are 10 strategies to lift your margin:\n1. Negotiate better prices with your suppliers.\nAs they say, ‘the squeaky wheel gets the oil’, so if you don’t ask, you won’t get. \n\n2. Update your pricing model.\nMake sure you’re using the most recent supplier prices and that all costs are included in your price. \n\n3. Back cost jobs regularly.\nReview exactly what you spent on 2-3 jobs each month and compare the actual cost to what you anticipated the cost would be when you quoted the job. \n\n4. Get rid of slow-moving items or work that has a poor return.\nSelling old stock at cost will drop your margin, but if you replace those items or jobs with higher-margin items, you’ll achieve a higher return in the long run. \n\n5. Set budgets and targets with your team.\nGive your team something to aim for. Celebrate success when the targets are achieved. \n\n6. Report your results on a cloud-based, real-time system.\nYou can’t manage what you don’t measure! Regularly monitor your most important Key Performance Indicators on your dashboard. \n\n7. Reduce wastage and re-work.\nWhat processes need to be updated to help reduce wastage and re-work? Or, if the processes are correctly documented, what training do you need to provide to your team to ensure the processes are being followed to reduce wastage and re-work? \n\n8. Review your sales process.\nDoes your sales team know which products or services have the highest margin? Do they know how to upsell to those higher-margin products or services? Identify the sales skills gaps in your team and implement training. \n\n9. Make a plan.\nThere are plenty of areas for improvement in your business. Unless you write them down, you’re unlikely to bring the correct focus to them. Make a plan to improve one area at a time. \n\n10. Involve your accountant.\nNot only to help you with idea generation and building a plan, but also to hold you accountable to do the things you need to do. \n\nWe can help you lift your margin – contact us today!\n\n“To improve is to change; to be perfect is to change often.” – Winston Churchill" image: https://balanceca.nz/hubfs/Gross-Margin-1024x559-1.jpeg --- [![Ecom](https://balanceca.nz/hubfs/raw_assets/public/codfina/images/image_web/Logo_1.png)](https://balanceca.nz/) - [Home](https://balanceca.nz/) [![Ecom](https://balanceca.nz/hs-fs/hubfs/raw_assets/public/codfina/images/image_web/startup.png?width=60&name=startup.png) Start-ups](https://balanceca.nz/start-ups) [![Established](https://balanceca.nz/hs-fs/hubfs/raw_assets/public/codfina/images/image_web/establishedbusinesses.png?width=60&name=establishedbusinesses.png) Established Businesses](https://balanceca.nz/established-businesses) [![Agricultural](https://balanceca.nz/hs-fs/hubfs/raw_assets/public/codfina/images/image_web/agriculturalbusinesses.png?width=60&name=agriculturalbusinesses.png) Agricultural Businesses](https://balanceca.nz/agricultural-businesses) - [About](https://balanceca.nz/about-us) - [Services](https://balanceca.nz/services) [![image](https://balanceca.nz/hubfs/raw_assets/public/codfina/images/image_web/services_1.png) Annual Accounting & Tax Services](https://balanceca.nz/services#nav_f4) [![image](https://balanceca.nz/hubfs/raw_assets/public/codfina/images/image_web/services_2.png) Business Support Services](https://balanceca.nz/services#nav_f4) [![image](https://balanceca.nz/hubfs/raw_assets/public/codfina/images/image_web/services_3.png) Business Development](https://balanceca.nz/services#nav_f4) [![image](https://balanceca.nz/hubfs/raw_assets/public/codfina/images/image_web/services_4.png) Business Planning](https://balanceca.nz/services#nav_m4) [![image](https://balanceca.nz/hubfs/raw_assets/public/codfina/images/image_web/services_5.png) Cashflow Management](https://balanceca.nz/services#nav_m4) [![image](https://balanceca.nz/hubfs/raw_assets/public/codfina/images/image_web/services_6.png) Accountability Coaching](https://balanceca.nz/services#nav_m4) [![image](https://balanceca.nz/hubfs/raw_assets/public/codfina/images/image_web/services_7.png) Succession Planning](https://balanceca.nz/services#nav_m4) [![image](https://balanceca.nz/hubfs/raw_assets/public/codfina/images/image_web/services_8.png) Organisational Review](https://balanceca.nz/services#nav_b3) [![image](https://balanceca.nz/hubfs/raw_assets/public/codfina/images/image_web/services%20icon-9.png) Governance](https://balanceca.nz/services#nav_b3) [![](https://balanceca.nz/hubfs/raw_assets/public/codfina/images/image_web/services-10-01.png) Specialist Māori Sector Services](https://balanceca.nz/services#nav_f4) [![](https://balanceca.nz/hubfs/raw_assets/public/codfina/images/image_web/11_Connections.png) Connections](https://balanceca.nz/services#nav_b3) # BALANCE Take control of your finances with BalanceCA, your trusted partner for all your accounting and financial needs. 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[Learn More](https://balanceca.nz/income-tax-cal) - [Payment](https://balanceca.nz/Payments) - [Contact us](https://balanceca.nz/contact-us) [![](https://balanceca.nz/hubfs/raw_assets/public/codfina/assets/imgs/page/image_web/Coffee.png) Grab a coffee](https://balanceca.nz/Booking) [![IORI](https://balanceca.nz/hubfs/raw_assets/public/codfina/assets/imgs/page/image_web/Logo1.png)](https://balanceca.nz/) - Home - [About](https://balanceca.nz/about-us) - Services - [Blogs](https://balanceca.nz/blogs) - Calculators - [Payment](https://balanceca.nz/Payments) - [Contact us](https://balanceca.nz/contact-us) - [My Profile](https://balanceca.nz/blogs/login.html) - Work Preferences - My Boosted Shots - My Collections - Account Settings - Go Pro - [Sign Out](https://balanceca.nz/blogs/register.html) ## THE 10 WAYS TO LIFT YOUR MARGIN Tags: --- ![Balance CA](https://balanceca.nz/hubfs/kamato-1.png) [Balance CA](https://balanceca.nz/blogs/author/balance-ca) Updated: June 05, 2023 Jan 20, 2024 5:38:14 PM --- Improvements can always be made at the margin. Small tweaks to your processes or systems can make a massive difference to the end result. It’s the same with your business margin – a 1% increase in your gross margin on $500,000 of sales is an extra $5,000 on your bottom line.  The best part about improving your margin is that you increase your profit without needing to lift your sales. ### Here are 10 strategies to lift your margin: **1. Negotiate better prices with your suppliers.** As they say, ‘the squeaky wheel gets the oil’, so if you don’t ask, you won’t get.  **2. Update your pricing model.** Make sure you’re using the most recent supplier prices and that all costs are included in your price.  **3. Back cost jobs regularly.** Review exactly what you spent on 2-3 jobs each month and compare the actual cost to what you anticipated the cost would be when you quoted the job.  **4. Get rid of slow-moving items or work that has a poor return.** Selling old stock at cost will drop your margin, but if you replace those items or jobs with higher-margin items, you’ll achieve a higher return in the long run.  **5. Set budgets and targets with your team.** Give your team something to aim for. Celebrate success when the targets are achieved.  **6. Report your results on a cloud-based, real-time system.** You can’t manage what you don’t measure! Regularly monitor your most important Key Performance Indicators on your dashboard.  **7. Reduce wastage and re-work.** What processes need to be updated to help reduce wastage and re-work? Or, if the processes are correctly documented, what training do you need to provide to your team to ensure the processes are being followed to reduce wastage and re-work?  **8. Review your sales process.** Does your sales team know which products or services have the highest margin? Do they know how to upsell to those higher-margin products or services? Identify the sales skills gaps in your team and implement training.  **9. Make a plan.** There are plenty of areas for improvement in your business. Unless you write them down, you’re unlikely to bring the correct focus to them. Make a plan to improve one area at a time.  **10. Involve your accountant.** Not only to help you with idea generation and building a plan, but also to hold you accountable to do the things you need to do.  We can help you lift your margin – contact us today! > *“To improve is to change; to be perfect is to change often.”* – Winston Churchill ![image](https://balanceca.nz/hubfs/raw_assets/public/codfina/images/image_web/Logo_1.png) ##### Balance Whanganui - [0800 480 062](tel:+640800480062) [06 348 0062](tel:+64063480062) - [whanganui@balanceca.nz](mailto:whanganui@balanceca.nz) - 10 Dublin Street, Whanganui, 4500 PO Box 670, Whanganui, 4540 ##### Balance New Plymouth - [06 769 5389](tel:+64067695389) - [newplymouth@balanceca.nz](mailto:newplymouth@balanceca.nz) - 141 Powderham Street PO Box 593, New Plymouth Central, New Plymouth 4310 ##### Balance Stratford - [06 765 6156](tel:+64067656156) - [stratford@balanceca.nz](mailto:stratford@balanceca.nz) - 199 Broadway, Stratford, 4352 PO Box 670, Stratford, 4352 Balance Official 2026. All rights reserved. [mailto:hello@balanceca.nz](mailto:hello@balanceca.nz) [tel:+640800480062](tel:+640800480062) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Balance CA", "url" : "https://balanceca.nz/blogs/author/balance-ca" }, "dateModified" : "2024-01-20T22:38:14.212Z", "datePublished" : "2024-01-20T22:38:14.000Z", "headline" : "THE 10 WAYS TO LIFT YOUR MARGIN", "image" : [ "https://balanceca.nz/hubfs/Gross-Margin-1024x559-1.jpeg" ], "mainEntityOfPage" : { "@id" : "https://balanceca.nz/blogs/the-10-ways-to-lift-your-margin", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject" } } } ```