A BUSINESS expert from Butlers Cross has warned bosses about the perils of financial mismanagement during the recession.
Brian Watts spent 30 years teaching financial skills to senior account managers from companies like Universal Films to Sony and Philips to give them more confidence in their business dealings, and maximise profits from their transactions.
He hopes his new paperback Magic Bullet Finance Skills For Sales And Marketing – his seventh on business finance – will help managers avoid the pitfalls of poor pricing decisions.
“Being numerically illiterate when you’re dealing with huge sums of money can be very costly to both your company and career, especially nowadays,” he warns.
“I was astonished how many high-earning managers didn’t even know how to calculate percentages.
“For instance, there was a woman I taught at a record company who thought she was achieving her objective of making a 25 per cent margin on CD sales.
“But she was just putting the prices up by 25 per cent, which only gave her a 20 per cent margin, so she was five per cent short on every deal. It meant the company was losing thousands of pounds and more every year.”
The father-of-two says managers responded well to the jargon-free, common sense approach he took.
“We’re going through the worst recession since the 1930s, and with the huge amount of competition out there for dwindling orders, people more than ever need to be financially savvy in giving deals.
“With so many companies going under these days, it’s also crucial to spot the warning signs in customers’ businesses to avoid being on a list of unpaid creditors, which is one of the many risks sales and marketing people face these days.”
Mr Watts’ book is available as a paperback on Amazon.