But here`s the thing, we have unique niche products that are selling steadily from our online boutique, but my question is how do we go from not profiting to making a profit. Now when I say `profit` I mean we recoup the manufacturing costs, but we are not in the positive with our credit cards we used to get started. I mean we are making our monthly payments just fine, but when and how do you get to that point where you`re surpassing your costs enough to profit?
I don`t want to really raise prices as I think we`re in a nice groove in terms of price points. Will it always be this way until we secure large company orders???
Any advice, light at the end of the tunnel, or feedback is most helpful!
Although it`s tempting to toss out possible solutions - we really a clear identification of the situation first.
You say the company is not making a profit - but is it profit or cash flow that is the issue? If you are not profitable, your income statement should offer some good clues as to the issue:
- Insufficient gross margin percentage per sale
- Low revenue volume.
If you know which of the three above areas are the cause - then you can begin to determine the actions to take.
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