Naturally, the top goal in business is profits. But those profits must be “clean.” What I mean by that is, the customers must feel as if what they purchased was worth every cent.
Many businesses have been able to cut costs and maximize profits, but they have done so in unclean ways by taking the original quality from the product.
That is not the proper method to becoming more profitable, because you will damage your business and brand reputation.
In this post, I am going to share 5 “clean” tips on making your business more profitable.
Making Your Business More Profitable #1: Erase Activities That Are Not Adding Value To The Customer Or The Company
I suggest you take some time to list all the activities and tasks performed on any normal day in your business. Now describe how each one adds value to either the customer, company or both.
If you cannot find any way it adds value, it is probably erasable and will save the company money and time which means more profits.
Making Your Business More Profitable #2: Raise Prices By 2%
The majority of consumers understand that a business does have to occasionally raise prices. They may not like it, but they understand.
Your product or service is solving a problem for them and paying 2% more is not a drastic change. After all, you are paying $100 for something that helps you immensely, why won’t you go ahead and pay $102 for it?
Making Your Business More Profitable #3: Know Your Return On Investment With Every Resource
If you are going to contract a person, purchase a piece of machinery or integrate a software, you should have a good idea what the ROI (Return On Investment) will be.
If you are questioning the ROI, maybe you don’t need it or maybe you should request a trial run to see if it will actually help the business.
It makes no sense investing in something that does not add to the profit margin.
Making Your Business More Profitable #4: Cross And Up Selling
If you are not cross selling or up selling you are not doing it right!
The businesses that have great profits always have techniques to cross and up sell. Consider the local barber who tells you he can wash and blow dry your hair once he finishes cutting it for $2 more (up selling). And when you are at the cash register, he shows you the new shampoo and conditioner that is fantastic… A special deal for customers at 5% off when the purchase a haircut (cross sell).
Institute up and cross selling and watch your profits come up.
Making Your Business More Profitable #5: Have A Customer Loyalty Program
Experts have found that it can actually cost a company 3 times more to get new customers than it costs to keep selling to existing customers.
Something like buying 5 times gets you a 20% discount the 6th purchase will get you more sales and therefore get the business more profits.
I just touched on the edge of the many ways to get your business more profitable. Start with these and watch your profits come up.
I will touch more on this subject in a later post.
Before I go though, I have a free training course to give you. Just click here and get 7 Days To Profitability. I know it will help you.
Hey… We will get your business flying…