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The Power of Multiplication

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Uploaded by on Jan 1, 2012

In this video, Tony Gattari shares the impact of 5 key variables in driving gross profit for any business. He illustrates how, by improving the 5 variables or levers by 10%,the business profit can explode significantly.

Any business is driven by profit. Profit is made of 5 very distinct variables. These are 5 levers you can manipulate at the same time to give you amazing result. These 5 levers are leads, conversion rate, frequency of transaction, average dollar sale and margin.

Leads generation can be quite expensive so to save money, measure leads. What you can measure, you can manage. Leads x conversion rate = number of customers. Conversion rate is how many of the leads are actually converted to customers. Before you can accelerate your leads, you have to improve your conversion rates. Number of customers x number of transactions x average dollars sale = turnover. Turnover x margin = PROFIT.

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