See how small changes create big impacts on your bottom line.
Start by editing the yellow sample entries below with just a few numbers from your Profit & Loss statement (P&L). The most recent 12 months of data works best if you have that. And don't worry about being exact - ballpark figures will still give you great insight.
Now move each yellow lever up 1%, one at a time, and watch how the changes flow to the Net Profit line in the P&L Statement Comparison. You'll notice three of the four levers send their full impact to the bottom line - but Volume Increase only sends part of it, because increasing sales also increases your Cost of Goods Sold. Understanding that difference is one of the key reasons this tool exists.
Raise avg price per unit to $500
Raise unit sales to 2,000
Cheaper materials or logistics saves $0
Lower overhead and admin saves $0
| Line Item | Original | Planned | Change |
|---|---|---|---|
| Revenue | $1,000,000 | $1,000,000 | $0 |
| COGS (Variable) | $475,000 | $475,000 | $0 |
| Gross Profit | $525,000 | $525,000 | $0 |
| Gross Margin | 52.5% | 52.5% | 0.0% |
| G&A (Fixed) | $400,000 | $400,000 | $0 |
| Net Profit | $125,000 | $125,000 | $0 |
To achieve this $0 net profit increase, you need to:
You've seen what's possible. Now let's make it real. For each lever you adjusted, assign a name, a deadline, and a specific action step. Even a 1% improvement won't happen unless someone owns it, has a deadline, and knows how to do it. Helping you outline a plan for growth is the other key reason this tool exists.
Edit the sample yellow entries in the MarginMover Plan below.
| What Has To Be Done | Who | Amount | When | How |
|---|---|---|---|---|
| Price Increase | $0 | |||
| Volume Increase | 0 | |||
| COGS Decrease | $0 | |||
| G&A Decrease | $0 |