Merchant Boosts Profit Despite Revenue Decrease by 60%
Interview with Mathias Schrøder: Scaling Down for More Profit and Freedom
In 2023 Mathias Schrøder found himself stressed, burned out, and unsure of how to improve the financial situation of his Denmark-based clothing company. Despite scaling revenue, overhead costs were eating into profits and consuming his free time.
Realizing that he needed to tackle the problem from a different angle, Schrøder made the bold decision to scale down. This involved letting go of employees, reducing warehouse expenses, and getting rid of stagnant inventory. The outcome? A 60% decrease in revenue, but a 25% increase in profits.
In a recent conversation, Schrøder shared his journey with us. Below is a condensed and edited transcript of the discussion.
Eric Bandholz: Who is Mathias Schrøder and What Does He Do?
Mathias Schrøder: With a background in ecommerce and a family clothing business, I made the choice to shift focus from high revenue to more freedom. By cutting back on unnecessary expenses and refining our business model, we were able to gain control over our time and increase profitability.
Bandholz: What Led You to Make That Decision?
Schrøder: After experiencing burnout and stress, I realized that I needed a change. We had too many costs and too little profit. By questioning our approach and making strategic cuts, we were able to see a significant improvement in our bottom line.
Implementing Changes and Seeing Results
Over time, we made the necessary adjustments to our operations. Despite a decrease in revenue, our profits saw a notable increase. This shift allowed us to focus on what truly matters and pursue projects that align with our passions.
Where to Find Mathias Schrøder
If you’re interested in following our journey or learning more about our analytics app for Shopify stores, you can visit our ecommerce site at PatinaMode.dk or check out the analytics app at GetKleio.com. Connect with me on X and LinkedIn for more insights.
Frequently Asked Questions
1. How did Mathias Schrøder decide to scale down his business?
After experiencing stress and burnout, Schrøder realized that the problem lay in excessive overhead costs. By making the bold decision to scale down, he was able to increase profits and gain more freedom.
2. What was the result of scaling down for Mathias Schrøder’s business?
Scaling down led to a 60% decrease in revenue for Schrøder’s business, but it also resulted in a 25% increase in profits. This strategic move allowed him to focus on what truly matters and pursue projects that align with his passions.
3. How did Mathias Schrøder’s background in ecommerce contribute to his decision-making process?
With years of experience in ecommerce and a family clothing business, Schrøder was able to analyze his business’s financial situation and make informed decisions to cut costs and improve profitability.
4. What advice does Mathias Schrøder have for other entrepreneurs facing similar challenges?
Schrøder advises entrepreneurs to take a step back, evaluate their business model, and ask themselves why they are pursuing certain strategies. By being honest with themselves and making strategic cuts, they can achieve greater profitability and personal fulfillment.
5. Where can I learn more about Mathias Schrøder’s journey and projects?
To follow Mathias Schrøder’s journey and learn more about his projects, you can visit his ecommerce site at PatinaMode.dk and explore the analytics app at GetKleio.com. Connect with him on X and LinkedIn for more insights.
