Profit Blog

Jarmo Manninen & Muutosdraiveri Oy


What do your company's sales produce for your company?

18. maaliskuuta 2025

Achieving a company's financial goals must be based on PROFITABLE GROWTH, which requires that the company's financial management conditions are in order. When a company has the financial management conditions in order, this practically means that the company knows what results the company can achieve with its current investments and current products and services.

In the following, I will examine the company's sales function from the perspective of the company's financial management. Sales means an activity that results in selling the company's products and services in such a way that the company's sales goals are achieved. The goal of a company's sales is to achieve a turnover in accordance with the company's budget goals by selling the company's products and services at prices determined in connection with the company's budget goals. When asked about sales goals in companies, people always remember to say that the goal of sales is to achieve turnover growth. The latter part of the previous sentence about sales goals, "at prices determined in connection with the budget goals," is too often forgotten. Unfortunately, people often have the idea that all of a company's profit goals are achieved when the company's turnover is increased, increased, increased, etc. It is worth remembering that a company's profit only increases with the sale of each product and service when they can be sold at a price that covers all direct costs and the company's direct sales margin requirement. The company must have enough direct sales margin in euros from the sale of each product and service that the company can cover the product's and service's share of the company's indirect costs, fixed costs, deferred depreciation and financial expenses. What the company then has left from the sale of the product and service is profit before taxes. If the sale of a product or service cannot obtain a price at which the direct sales margin received by the company does not cover the product's or service's share of the above-mentioned costs and expenses, then the sale of the product or service is unprofitable for the company. In other words, selling any product or service at a price that is too low will lead to profitability and payment difficulties for the company.

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I have written four books on creating the conditions for the company's financial management, and they are available in well-stocked bookstores and online bookstores in Finland, for example from BoD (Books On Demand) at:





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