Profitability Enhancement

Profitability EnhancementHealthy companies get and stay that way by practicing a combination of financial and managerial disciplines which contribute to continuous growth of sales and profits. Silverman Consulting is frequently retained to assist companies in maintaining or enhancing these profitability components. Our services include:

  1. Profitability analysis – A technique for understanding the impact of three key contributors to a company’s sales base: customers, product and service. Silverman Consulting quantifies the profitability characteristics of these components and helps adjust the "price/volume/mix relationship".

  2. Cost analysis – To be an effective management tool, cost system management must guide you in making good business decisions on what to offer and what to charge for it. Silverman Consulting helps companies utilize this widely misunderstood accounting discipline.

  3. Benchmarking and performance analysis – To effectively interpret operating results, management must establish realistic financial benchmarks. Only then can they determine whether they are operating above or below expectations and take appropriate corrective action. Silverman Consulting helps corporate financial managers develop appropriate benchmarking and performance measurement systems.

  4. Supplier analysis and negotiation – As customers continue to squeeze margin out of company sales, companies in turn need to leverage their position with suppliers. Silverman Consulting is experienced in analyzing vendor cost structures and obtaining more favorable pricing agreements.

  5. Implementation and execution – Once profitability by segment is understood, procedures may be changed to maximize the value added revenue from pricing policy, production scheduling, even organizational structure. Silverman Consulting assists companies in various implementing strategies for profitability enhancement, including "right-sizing" where appropriate.