Blogjam: Pump Up Your Profit Margins At Just Audiology Stuff—a blog about commercial strategies in audiology and health care—Geoffrey Cooling talks about the changes sweeping through hearing health care, and the shrinking margins that often accompany a thriving industry. Even though the profession's profitability has increased, revenues are not rising consistently to match, ... Blogjam
Blogjam  |   July 01, 2013
Blogjam: Pump Up Your Profit Margins
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Blogjam
Blogjam   |   July 01, 2013
Blogjam: Pump Up Your Profit Margins
The ASHA Leader, July 2013, Vol. 18, 12. doi:10.1044/leader.BGJ3.18072013.12
The ASHA Leader, July 2013, Vol. 18, 12. doi:10.1044/leader.BGJ3.18072013.12
At Just Audiology Stuff—a blog about commercial strategies in audiology and health care—Geoffrey Cooling talks about the changes sweeping through hearing health care, and the shrinking margins that often accompany a thriving industry. Even though the profession's profitability has increased, revenues are not rising consistently to match, and Cooling explores ways to reverse the trend.
"It is a common concern I hear in this market: People are busy enough, but [the] margin is constantly squeezed. Sales are not up enough to make up for that squeeze in margin. Most customers also talk about the quiet times being quieter. Marketing is not really delivering and they obtain most of their sales through their existing customers—either through re-sales or referral sales.
"However, for at least one of my customers in Ireland the story is very different. He has tripled his revenue over three years. He has increased both revenue and margin whilst profitability as a percentage has remained stable. In a growth phase profitability may remain stable or indeed slip, that is the nature of a growth phase. In purely figures terms, profitability has increased, more unit sales, more revenue, bigger profit figure. The question is why?"
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July 2013
Volume 18, Issue 7