This week we're going to be talking about Margin Pressure. In fact we won't be talking about it just this week. We're going to be spending the whole month talking about margin pressure and how to deal with margin pressure for your business.
The current economic climate in Western Australia is such that there has been a lot of competition around pricing. Wheat that means is that people are cutting their prices with a view of hoping to get more work or create more sales by bringing their prices down. And by cutting the prices what that does is it takes the money straight off the bottom line.
Doing this actually very, very quickly reduces profitability which then in turn reduces your cash flow. Which is very, very challenging to do or to deal with if you don't have the right strategies in place or the right finding in place to handle price and pressure or margin pressure.
So over the next 30 days we're going to be having a look at this in more detail and give you some strategies that you can use to negate this thing which is happening right now being margin pressure.
Stay tuned for more!