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Marginal Gains

Proactive News

Marginal Gains

At Proactive we are big advocates of the compounding effect of marginal gains.

Every week we utilise different reports that enable us to spot trends and abnormalities within our business.

One of the reports we run shows the gross margin that each of our jobs run at.

If a margin is too high, we question it!

Have we overcharged a customer?

Have we inadvertently underpaid a supplier?

If a margin is too low we question it!

Have we undercharged a customer?

Have we overpaid a supplier?

This week our checks revealed that we had undercharged two customers for our service,

Fortunately, we have such a good relationship with these two customers we can tell them our error and raise a new invoice for the shortfall,

However even if we could not do that, we would use it as a training exercise and flag it with our team member that had made the error, to stop it happening again in the future.

This week due to checking we have found £60 that we would not have had, if we had not checked

£60 x 52 weeks = £3120.00

Of course, it is better to do it right first time, but I guess it shows how important these checks are!

Marginal Gains