Keyless Locksmiths Pty Ltd Revenue statement for the year ended 30 June 2001 Sales Less cost of goods sold Opening stock Purchases Less closing stock Gross profit Less selling expenses Advertising Salaries Less administrative expenses Telephone Rental Net profit (a) Calculate the gross profit ratio for 2001 - HSC - SSCE Business Studies - Question 22 - 2001 - Paper 1

Increase in Selling Expenses: An increase in selling expenses could have negatively impacted net profit, resulting in a lower net profit ratio. Higher advertising costs or increased salaries can reduce the overall profitability.

Increased Administrative Expenses: An increase in administrative expenses such as salaries and rental costs can also lead to diminished profitability. If these expenses grew at a rate higher than sales revenue, it would further decrease the net profit ratio.

Enhance Online Marketing Presence: By investing in a digital marketing strategy, including search engine optimization (SEO) and social media advertising, Keyless Locksmiths can reach a broader customer base. This would likely lead to increased sales volume as more customers become aware of their services.

Justification: A larger online presence can not only attract more customers but also enhance brand recognition, potentially leading to long-term customer loyalty and repeat business.

Implement Customer Retention Programs: Creating loyalty programs or offering referrals can incentivize existing customers to return and recommend the service to others.

Justification: Retaining existing customers is generally more cost-effective than acquiring new ones. Such programs can enhance customer satisfaction and promote word-of-mouth marketing, which can contribute to improved profitability.