What does it take to boost your business’s profits by £1,500?
Businesses paying expensive rollover rates for their energy can typically save £1,500 simply by switching their supplier. It's a much easier way of boosting profit than increasing sales.
Running your own business can be an expensive venture, but getting costs under control is one of the easiest ways to maximise profit - and energy should be one of the first places you look.
Small firms can typically save £1,500 by switching from expensive rollover contracts to the cheapest rates for their gas and electricity. It's a quick way to boost profits - and it can be done with minimal effort.
If you're paying over the odds for energy - which is very easily done if you haven't engaged with the market recently -this is where you should look in order to improve your bottom line. Indeed, generating that £1,500 through sales is a much tougher task. Here are some small business examples.
High streets stores face a lot of strain in the modern retail environment, with online SMEs going from strength to strength.
Overheads are high, and generating an extra £1,500 through sales is a big ask. Assuming you sell t-shirts at £15 with a £5 profit margin, that's 300 extra t-shirt's you'd have to shift. It's possible, but a 15-minute phone call is a far less daunting prospect.
Pubs come in all shapes and sizes, and energy bills can quickly spiral when you think of all the power that's needed to keep drinks cool and punters comfortable.
A landlord on the cheapest rates available could be saving himself £1,500 a year, but finding the equivalent amount of profit via the top line would take a considerable sales boost. Based on a 30% profit on pints sold at an average of £3.20, a landlord would have to sell 1,562 extra pints to add £1,500 to his bottom line.
Garages use a lot of energy, so those that are on the best deals have got half the battle won. Still, any owners on more expensive energy contracts would need to find a lot of work to generate the magic £1,500 figure they could effectively raise through switching. If they carry out MOTs at £48- making a 30% profit on each - that's 104 extra MOTs they'd need to complete. At two hours per MOT, that's 26 working days a garage owner could save.
Limited-time offer - Any business that sets up a gas or electricity contract with Make It Cheaper will be entered into our prize draw for a chance to have its energy bills paid for an entire year! Imagine how much money that would free up in your budget.
Post Date: April 1st, 2014