Skip to main content

Pump up profitability

Sageworks
December 1, 2011
Read Time: 0 min

U.S. consumer confidence improved in November from last month. But with the failure of Congress’s supercommittee to reach an agreement on the deficit and unemployment still around 9 percent, consumers — who generate 70 percent of all economic activity — may remain uncertain about the future. 

If sales volumes aren’t improving or are volatile, business owners can still grow profits. It’s all about boosting profitability, which is something privately held businesses have been doing since 2009, according to an analysis of financial statements by Sageworks. Pretax net margins for privately held companies in the U.S. as a whole have been nearly 7 percent this year, compared with about 5 percent last year and 4 percent in 2009, according to Sageworks data.

 

Sageworks experts Michael McNeilly, director of advisory services, and Nathan Myers, director of consulting services, offer three tips to generate more bang for the bucks your business brings in:

●Revisit suppliers. Loyalty often plays a role when choosing suppliers, says McNeilly. But there are probably alternative vendors eager to earn your business, so ask current and prospective suppliers about discounts they can offer, he says. Be sure to ask about future pricing, too, McNeilly says, as you don’t necessarily want to switch suppliers for a one-time discount. “Often using more than one supplier creates a competitive situation that allows you to continuously get more advantageous pricing,” he says.

See the entire Sageworks article in The Washington Post here.

About the Author

Sageworks

Raleigh, N.C.-based Sageworks, a leading provider of lending, credit risk, and portfolio risk software that enables banks and credit unions to efficiently grow and improve the borrower experience, was founded in 1998. Using its platform, Sageworks analyzed over 11.5 million loans, aggregated the corresponding loan data, and created the largest

Full Bio

About Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth.

Make Big Things Happen.

 

Looking for Banker’s Toolbox? You are in the Right Place!

Banker’s Toolbox is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the login button here, or the link in the top navigation, to log in to Banker’s Toolbox Community Online.

Make yourself at home!

Looking for MainStreet Technologies? You are in the Right Place!

MainStreet Technologies is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the contact us button here, or the link in the top navigation, to reach product support for your MST products.

Make yourself at home!

Looking for Sageworks? You are in the Right Place!

Sageworks is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the login button here, or the link in the top navigation, to log in to your Sageworks products.

Make yourself at home!

Looking for Farin? You are in the Right Place!

Farin is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the login button here, or the link in the top navigation, to log in to your Farin client portal.

Make yourself at home!

Abrigo acquires construction loan management solutions

Coupled with our lending suite, Construct and +Pay from BankLabs enable end-to-end automated residential/commercial construction loans.

Read the press announcement

BankLabs Logo Abrigo Logo