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Improving Profit: Using Contribution Metrics to Boost the Bottom Line by Keith N. Cleland

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Garment Maker Multiplies Net Profit by 700%

Caught up in the traditional approach to pricing, the owner and sales manager are excited about applying the concepts opened up by CBA/TARI.

A partner of the accounting practice drove me to his client’s clothing factory and introduced me to a smilingly alert owner and his attractive designer wife. After the formalities and a tour of the factory, we settled down in the conference room.

“How do you price your garments?” I asked.

“Well, we go to the larger retail outlets and check the selling price of say, a pair of shorts, then we’ll come back and work out how much we can make them for in addition to ...

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