Magazine: Five ways to become profitable
László Szilágyi
business coach
Forward Progress Consulting
The Lipóti Bakery on Széchenyi Square in Szeged got a new owner in May 2016 because it was making loss. It became evident that the bakery needed more customers to become profitable. The new owner decided to add new products such as sandwiches, freshly pressed fruit and vegetable juices to the product selection. They also built an upper section where customers could sit down to eat and drink. A bit later soups and salads also appeared on the menu, so that those wanting a quick lunch would also come to Lipóti Bakery.
As a result of these steps, the number of customers increased, what is more, the profit margin on the new products was bigger than on the baked goods that they used to sell. If we take a look at what happened in the Szeged bakery, we can see a good example of the ‘5-way model’ that forms the basis of ActionCOACH’s methodology. The model, there are five factors which can make a business profitable: 1. number of customers, 2. conversion rate, 3. number of purchases, 4. average value of a purchase, 5. profit margin.
Our business coaching service offers solutions to entrepreneurs that lead to improvement in the five fields mentioned above. Much more people have started going to the given Lipóti Bakery, thanks to the new products and services; more customers meant more purchases and higher basket value. //
Related news
More than half a million against food waste and inflation!
Munch, founded in Hungary, merges with the largest food rescue…
Read more >A rally that is about cooperation – for the 16th time
Just like last year, the Coca-Cola HBC Magyarország Kft. team…
Read more >Magazine: Have a nice breakfast!
Ákos Bősze, METRO’s business development executive (HoReCa) told our magazine…
Read more >Related news
In 2023, SPAR realized a turnover of over HUF 1 billion
SPAR Hungary achieved a turnover of HUF 1,023.2 billion in…
Read more >KSH: Gross average earnings were HUF 605,400 in February 2024, 14.0 percent higher than a year earlier
In February 2024, the gross average earnings of those employed…
Read more >Primark’s first domestic store will open in a month
Primark will open its doors at 10 a.m. on May…
Read more >