“Just get more sales”.
It’s the advice business owners hear everywhere – and it’s one of the most misleading myths out there.
In this episode of the Beyond the Numbers podcast, Bev Wakefield (founder of Vibrant Accountancy) breaks down why more sales won’t fix a business that’s already leaking profit. In fact, if your model is struggling, more sales can accelerate the problem.
This blog shows you why… and what to do instead.
Why More Sales Don’t Always Improve Small Business Profitability
Think of your business as a bucket. Sales are the water you pour in.
If the bucket is solid, more water fills it.
But if the bucket has holes, it doesn’t matter how much you pour in. It just leaks out faster.
Those “holes” are the hidden issues that quietly drain your profit:
- Low margins
- Under-pricing
- Discounting
- High-maintenance, low-value clients
- Inefficient processes
When these leaks exist, chasing more sales is like turning the tap on full blast while ignoring the puddle forming at your feet.
The Biggest Profit Leaks That Make More Sales Dangerous
Here are three of the most common issues that make “more sales” a risky strategy:
1. Discounting too much
Discounting feels like a quick win, but it trains clients to expect more for less and erodes your margins. You win the work… but lose the profit.
2. Low-margin services
Some services simply don’t make money – or worse, they cost you money. If you’re selling something unprofitable, selling more of it just accelerates the loss.
3. Bad clients
High demand. Low pay. Constant pressure. These clients drain your time, your team, and your energy – and they rarely value the work you do.
These leaks don’t fix themselves. They grow.
A Real Example of Revenue Growth Making a Business Less Profitable
One business owner came to Vibrant Accountancy convinced that doubling sales would save the company. The problem? They were undercharging so heavily that every sale was actually losing money.
More sales didn’t help – they sped up the decline.
Once pricing was corrected, the business stabilised without needing to chase endless new customers. It’s a powerful reminder that more revenue doesn’t always mean more take-home pay.
Revenue vs Profit: The Numbers That Actually Show Business Health
It’s easy to assume a higher revenue means a healthier business – but it doesn’t. Revenue only shows what you bring in, not what you keep. A business can grow sales and still become less profitable if margins are too low or pricing is off.
This simple comparison says it all:
- Business A: £100k revenue → £10k profit
- Business B: £70k revenue → £20k profit
The healthier business isn’t the one with the biggest top line – it’s the one that keeps more money.
There’s a reason accountants love the saying: “Revenue is vanity. Profit is sanity.”
Why Client Quality Matters More Than Client Quantity
When you dig into your numbers, one thing becomes clear: not all clients contribute equally to your profit – or your stress levels. Some will strengthen your business, and others quietly drain it.
Understanding which is which is essential if you want healthy, sustainable growth.
To make this simple, you can group clients into four types:
- Low revenue / low profit → Time to drop
- High revenue / high profit → Dream clients
- High revenue / low profit → Tread carefully
- Low revenue / high profit → Hidden gems
Many business owners are surprised when they map clients this way. Often, it’s the low‑paying, high‑demand clients who create a disproportionate amount of stress – while delivering the least return. Letting those clients go can instantly increase profit and reduce pressure on you and your team.
How to Analyse Client Profitability and Improve Your Margins
Once you understand that some clients contribute more to your business than others, the next step is to look at the numbers behind each relationship. This doesn’t have to be complicated – it’s simply about getting clarity on which clients strengthen your margins and which quietly erode them. Most business owners think they know this, but the data often tells a completely different story.
Here’s a simple checklist to get started:
- Review client income over the last 6–12 months
This shows you who is bringing money in consistently. - Add direct costs
Include any materials, subcontractors, or expenses specific to that client. - Factor in team time (especially if you track timesheets)
Time is often the biggest hidden cost. If you use timesheets, brilliant – if not, estimate conservatively. - Calculate gross profit per client
Income minus direct costs and delivery time gives a clear picture of who is truly profitable. - Rank clients from best to worst
Patterns usually appear quickly – especially around low-paying, high-demand clients. - Look for insights
Which clients drain time? Which ones deliver great profit with surprisingly little effort? This is where meaningful decisions become possible.
This exercise isn’t about judgement – it’s about clarity. Once you can see where profit is slipping away, it becomes much easier to improve your margins through better pricing, more focused service offerings, or releasing the clients who no longer fit.
Three Practical Fixes to Make Sales Work for You
Once you’ve identified your profit leaks, here’s how to start repairing them.
- Increase prices on low-margin services
If something isn’t profitable, raise the price or stop offering it. - Reduce discounts and add value instead
If you want to sweeten the deal, offer bonuses, perks, or faster turnaround… not lower prices. - Improve efficiency
Small changes can transform your margins:- Automate low-value tasks
- Streamline onboarding
- Review client profitability quarterly
Efficiency protects your profit without needing more sales.
Focus on Profitable Sales, Not More Sales
By this point, it becomes clear that the goal isn’t simply to increase the number of sales – it’s to improve the quality and profitability of those sales. When your pricing, margins, and client mix are healthy, every new sale strengthens the business. But if those foundations are weak, more sales just amplify the existing problems.
Shifting your focus to profitable sales means fixing the leaks first: tightening margins, pricing correctly, working with the right clients, and delivering your most valuable services. Only then does pursuing more sales actually lead to growth instead of more stress.
Need Help Improving Your Profitability?
If you’re not sure where your profit is disappearing, you don’t have to figure it out alone. Vibrant Accountancy specialises in helping business owners understand their numbers, strengthen their margins, and build a business that actually supports the life they want.
We don’t just look at the spreadsheets – we look at the story behind them.
We help you spot the leaks, plug them, and create a business that feels lighter, healthier, and more rewarding to run.
Book a call and let’s look at your margins, pricing, and client profitability together.
