Unlocking Hidden Profit – The Science of Business Optimization

Unlocking Hidden Profit – The Science of Business Optimization

Welcome to The Purpose and Profit Podcast with Dr. Ty Wenglar, where we dive deep into profit acceleration and optimization—the key to increasing profitability without simply selling more. Most businesses unknowingly leave thousands, even millions, on the table due to inefficient pricing, operational waste, and missed customer opportunities. In this episode, we uncover:

✅ The #1 mistake draining business profits
✅ How a 1% price increase can boost profit by 8-10%
✅ Why reducing expenses directly increases the bottom line
✅ How Profit Acceleration Software uncovers revenue leaks instantly

We’ll explore real-world case studies and data-driven solutions that maximize profit with minimal effort, focusing on smarter pricing, workflow efficiency, and customer value expansion.

💡 Think you know your numbers? Think again. We’ll show how a small shift in strategy can unlock six- to seven-figure profit growth.

🔗 Want to take action? If you’re serious about accelerating your profit, join us for our exclusive Profit Acceleration & Optimization Webinar where we’ll take this discussion even deeper.

📅 Save Your Spot Here: https://lucentraprofitadvisors.com/webinar-registration480792

🔗 Download your free copy of The Profit Optimization Handbook for actionable insights: www/lucentraprofitadvisors.com/free-book

Transcript

 And welcome back to the purpose and profit podcast. I'm your host, Dr. Ty Winkler. And today we're diving into a topic that has the power to completely change the way you think about profit and that is profit acceleration and profit optimization. If you're a business owner or an entrepreneur, you probably spend a lot of your time.

Thinking about and worrying about growth. How do you increase sales? How do we expand customer base? How do we boost revenue? But. As I mentioned in the last podcast the fastest way to increase profits isn't necessarily to work harder or to sell more but to do more with what you already have. The reality is that most businesses are sitting on hidden profit opportunities and they don't realize it.

Today, we're going to uncover some practical strategies to help you maximize profit without increasing sales. And, we're going to introduce to you a tool that can reveal untapped revenue streams almost instantly. Before we get into it, I want to invite you to a free live webinar that I will be doing coming up at the beginning of March.

We're going to walk through these strategies as well as the software that I use that is the brains behind the strategies. So if you've ever wondered how to grow without working more hours and raising prices in a way that alienates customers, well, this is for you. You can sign up by following the link in today's show description.

For now, let's get into it. Let's start off by talking about the illusion of revenue versus profit. There's a fundamental question behind that. Why doesn't revenue always translate into profit? I had a friend once tell me that revenue feeds the ego. Profit Feeds the family. Many businesses believe that increasing revenue is going to automatically mean more profit as if they are kind of a linear relationship where one goes up the other follows exactly at that same amount.

But the reality is that profit leakage happens in pricing, it happens in inefficiencies, it happens in unoptimized operations, and oftentimes as Revenue increases. These issues are compounded and result in actually larger losses. In fact, a recent study found that over 50 percent of American businesses are failing to capture their full profit potential.

Let's take a look at the four biggest profit killers. And that is the first being poor pricing strategies. High operational costs, customer retention gaps, and inefficiencies in our workflows within the company. In short, bigger isn't always better. Profitability is what matters, and today we're going to continue discussing how you can increase profit without having to double your sales.

Now, you may be asking yourself, why on earth would a business leave money on the table? Well, the reality is, is most businesses don't know that they're doing it. They often lose thousands, hundreds of thousands, depending on their overall revenue, of dollars every year. They're leaking profit in areas that they don't realize are problems.

So let's break that down into the most common reasons that businesses leave money. Struggle with profit or fail to maximize profit. The first is inefficient pricing strategies. Many businesses actually underpriced their values or services because they're afraid of losing customers and they're afraid of competition.

There's such a pervasive

mindset that. You have to be the cheapest in order to compete, and it's just not the case. The reality is because price increases on pure profit, they go directly to your bottom line. So as a result, a 1 percent price increase, a simple 1%, in other words, a dime on a 10 item. It can lead to an 8 10 percent boost in profits without selling any more.

The key is to re evaluate your pricing model. Are you discounting too much? Is your pricing model consistent in that you are making a profit on all the items you have? In several of the companies that I've worked with, when we dug into that level of detail, it turned out that although they were making money as a company, they actually had some items they were losing money on, and some that they were making money on, more than they thought.

So they could actually make those prices lower, increase the prices of the other items, and net out to a greater profit. Then they were making to begin. I will qualify that. Obviously I am not referring to items that are purposely done as lost leaders or. Those types of situations where we're taking advantage of a knowing lower margin or even a negative margin in order to bring people in the door.

That is a different that's a different animal. That is a marketing ploy. That is not a pricing strategy. Now, the second item that I want to talk about. Runs in that same category of profit and that is because it goes directly to the bottom line, that being expenses, overhead expenses in particular, because although it may seem like a small amount of money when compared to revenue, you have to bear in mind that revenue isn't what the expenses come out of.

Expenses come directly out of your profit as a result, like price increases, the smallest reductions in our overhead in our expenses can result in huge gains to the profit again, that 1 percent reduction in expenses. Equates to an 8 to 10 percent increase in our profits because it's direct to the bottom line.

And along that same line of expenses, overhead expenses, is operational inefficiencies. So often businesses, well, this is the way we do things. And that is often the case. That is, and there is usually a good reason why it, A business started doing things a specific way. However, so often because the system works, we don't review it and analyze.

Is it still the best process for where the company is today? A good example of this is company structure. Now this isn't as directly to efficiency as far as profit. This more is a cultural effect within a company. But so often companies start out and then you have The founder, the owner, and then a very flat organizational structure beneath that.

Everybody answers to the owner because that's how it started out. But the reality is as the company has grown, they've really outgrown that model, but they haven't adapted as a result. Well, that same concept applies to a lot of processes within a company. Pricing processes how things are made, how things are done, how they're priced, how they're purchased.

All of these items should be reviewed and talked about so that you're making sure that you are using the best process for the company that you have today. Now, you may be asking yourself, and it's a question that I get quite often, is I've got your book I know the strategies, I know the 12 most common areas that we can, that I can improve, uh, why can't I just do this myself?

And the short answer is you can. However, the software will allow you to do it in a much more efficient and faster manner. It will also provide strategies and an implementation timeline so that you can really understand how to do it so that it is incorporated and used across the company.

Because let's face it, if you're like most business owners, especially small business owners. You spend all of your time doing everything you can just to keep your business running. That is where Lucentra comes in, and that is where this software comes in. Additionally, this software allows us to analyze the information without having to make guesses.

The software is using Over half a billion independent calculations behind the scenes. I won't pretend to understand exactly how that aspect works. But it will go through it so that we are talking about your profit, your business, your margins, your net and gross margins. The effect that A reduction or increase will have all of this is done specific to the numbers that you are providing rather than very generic straight out of a book.

Follow an example type of calculations would be. Here's the hard truth. Most businesses, in fact, almost every business that I have worked with, is sitting on five, six, sometimes seven figures of profit without realizing it. If you find that you're working harder than ever, you've got more customers, you're doing more, but you're not seeing that reflected in the profit margins, maybe you know you could be more profitable, but you don't know where to focus.

Maybe you've scaled the business and grown, but your margins didn't scale equally. If any of this is sounding familiar, join me for this webinar that I mentioned at the beginning of the pod. We're going to walk through exactly how this profit acceleration software works. We're going to demo it using numbers that are provided by you, the audience.

And you're going to see how small changes. Can have huge impacts on your bottom line. Now, with that said, please know that the webinar is not a sales pitch. Obviously, I would love it if you used to came back to me afterwards and wanted to explore possibly working together further. But that is not the intent of the webinar.

The webinar is simply to show you the power of the software. And how these small incremental changes can have huge impacts on your bottom line.

As we wrap up, let's recap real quick. First, most businesses are unknowingly leaking significant amounts of their Profit. Profit acceleration and profit optimization are about working smarter, not harder. They're about small changes that lead to big financial wins. Now, as always, if today's message inspired you, please like and share the podcast on Apple, Spotify, or whatever your favorite platform for pods is.

Together, we can amplify the impact of purpose driven leadership. You deserve clarity, you deserve confidence, and the strategies that align profit with purpose. If you're ready to take the next step, visit us. www. lucentraprofitedvisors.

com and book a call. Or, if you're not quite to that point, and you just want to understand profit optimization a little better, download my free book. It's filled with actionable insights that will help you with your leadership as well as your business. You can find that at www. lucentraprofitedvisors.

com backslash free book. Until next time, stay curious, stay courageous, and always lead with purpose.