Neil Gaskell is the Commercial Financial Controller for Indesit Company UK Ltd. He is a CIMA qualified accountant and is responsible for commercial finance and credit management. He specialises in financial modelling in Excel and Access.
In the current climate many companies are tightening their belts and looking where to cut unnecessary overheads. Far too often the area that is overlooked is the one profit and loss line that can do more for the bottom line than any fixed cost.
A 5% increase in sales revenue will add more to the bottom line than a 5% cut in fixed costs ever will. Before proposing a blanket price increase to your sales director, a simple analysis can be done to identify areas to reduce discounting and where profitable customer behaviour is not being encouraged.