If you’re in manufacturing, you’ve probably been at it a while. That means you’re efficient and smart about production. Ironically, that’s exactly where your problem is.
If you were failing at manufacturing and your process wasn’t profitable, you’d look for the best ways to fix it. But you have the luxury of not having to fix anything. Who was it that said, “If it ain’t broke, break it!?”
You see, most manufacturers raise their profits by trying really hard to increase sales. Doing that produces a highly linear result. The more you invest in sales, the more sales you get. If you want a scalable increase in profits, don’t just increase your sales, increase your entire profit margin.
Your profit margin is probably about 30%. Your good-enough manufacturing process can probably be improved by 20%. If you produce 20% more product in the same time at the same cost, That’s 20% more bottom line profit. So you’ve almost doubled your profit without adding a single new client.
So now, when you do go out and grow your sales, each new client will feel like you won 166% more business!
So here’s the big question. How do you find out where you can increase your manufacturing profit margin? In lean manufacturing, CAD Engineering methodology, and Product Development Implementation, start here: http://www.advice-manufacturing.com/SME-Manufacturing-Best-Practices.html#SME-Manufacturing-Businesses