RealTalkAJ

I’m sharing what I learned from other businesses compared to my own when dealing with profit margin increases over revenue.

Why some business owners focus on increasing their profit margin instead of revenue

I didn’t realize how much of an impact a movement in 1997 by the Business Round Table had on businesses globally.

That impact was maximizing shareholder value.

I’ve done on and off business practices that included partnerships since the early 2010s and mainly earned from profit margins.

But since I’ve started this site my focus has been on increasing revenue and I’ve been happier since then.

What are the causes of a decrease in gross profit margins?

Here’s the main causes of a decrease in gross profit margins:

• Declining sales
• Higher costs of goods sold
• Cost of labor
• Wrong pricing strategy
• High competition
• Not tracking cash flow
• Customer perception

These issues can be applied anywhere across the board in business but a good majority of them come from e-commerce operations.