Page 95 - The Way to the Top

prudent advanced buying, especially during price dips, pays off in
lowering our costs. We can also lock in fuel or energy prices for future

delivery to fix prices either to take advantage of historically low prices or
to protect against future shortages.

The point is to protect and expand the gross margins of your business.
Another way to widen margins is to keep your manufacturing plants ahead
of the state of the art by inventing your own machinery or modifying

standard equipment to be faster and more reliable. This can help keep
labor costs and fringe benefits down. We have all seen businesses that do a
lot of volume but are left with no profit or with a loss, but by keeping your
gross margin solid and tightly controlling your expenses below gross

margin, you’ll come out on top in any industry.

Buy low and sell high