Margin Growth Initiatives
Thin Lines, Big Problems
It’s been said (and sang) that the line between love and hate is thin. But thinnest of them all may be the line between revenue and cost of goods sold. Yes, we’re speaking of gross margin. The thinner the line, of course, the bigger the problem. And, if the first step is admitting there’s a problem, then the second step is fixing it. Of all the value creation tactics (sales growth, multiple change, dividend yield, etc.), margin change can yield the largest performance improvement. At Accordion, we excel at reading between the lines: diagnosing margin deficiencies, identifying appropriate operational improvements, and implementing effective margin growth initiatives.
The Accordion Approach to Margin Growth Initiatives
…and that. From trend analysis to fixed versus variable analysis to contribution margin analysis, etc. etc. We don’t just do the analysis. We analyze that analysis by every conceivable product, sku, cost, angle. And then we do something more: once the marginal deficiencies are diagnosed, we create real-world plans to improve upon them, helping change the trajectory of business performance.
The goal is simple: identifying margin growth opportunities to improve business performance. The execution of that goal is more complicated. It requires a strategic approach to margin expansion that meaningfully improves performance without sacrificing or eroding potential revenue growth. At Accordion, we make rising tide recommendations: strategic product line, operational, inventory and labor-related initiatives that balance margin improvements with overall company health.
Heads Down, Sleeves Up
Diagnosing marginal deficiencies and addressing them are steps 1 and 2. The third and most critical step is translating those recommendations into effective initiatives that can be implemented. At Accordion, we not only think, we do. We’re practitioners who work alongside management to help translate ideas into results via actual execution or a supervised approach to operational improvements.
And Then We Watch
And Then We Watch And by watch, we mean track, measure, evaluate, tweak and repeat. Margin improvement isn’t static. Effective initiatives must be repeated and sub-par strategies must be tweaked and reapplied. At Accordion, we not only improve the process around margin improvements, we help train critical stakeholders to continue effective execution long after we say a successful goodbye.
'Doing OK' never makes you the lead dog in the pack; Challenge your present business performance to accelerate value growth.