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Webinar: Never Say Never to Negative Operating Margin Jobs!

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Doug Bonecutter, DeKALB Molded Plastics

In a cash is king world with increasing competition, do you really understand market pricing and the ability to turn a negative gross margin job into a positive contributor?

Gross profit margin reveals how well a company generates a profit on the amount of money left over from product sales after subtracting the cost of goods sold (COGS). As most industry veterans use gross margin to determine whether their business strategy is achieving its production, sales, and profitability goals, many might agree that taking low to negative margin jobs is bad for business.
A negative margin can be an indication of a company's inability to control costs or to price correctly. However, leaders must understand that negative margins could be the natural consequence of industry-wide or macroeconomic difficulties beyond the control of a company's management.  So, if negative gross margin is a bad idea, should companies even consider taking on “losing jobs” as a trade-off between growth and profitability?
This presentation will focus on transactional models first and illustrate how to get beyond the tradeoff and demonstrate tactics that might change your mind to negative operating margin jobs.

This presentation is being replayed from the 2020 Benchmarking and Best Practices Conference. The presenter will be on hand to provide updates and answer any questions. 


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