Sell More Big Margin Goods/Services
Move to products that offer more margins. This will work in industries where people are not particularly brand sensitive – that is, they do not care about the brand they use or buy. This may mean buying a slightly more expensive product that you can make a higher profit on. Quite often, a lower priced item will offer a greater margin. You should consider exactly how much each item makes you, and then continue to stock only those that make you the most money. If you work in the service industry, consider which services offer the most money for the least amount of effort.
Increase Your Prices
This is as simple as it sounds – just hike your prices up 10% or so. This is good for most businesses, especially those in the service industry, where there are vast differences between the qualities of businesses. This allows you to make greater profit from each purchase made. Increasing your prices a little bit over a period of time should not upset your customers. It is possible that they will not even notice. Remember though, if you are in a highly competitive industry, where everyone promotes price and it is the customer’s number one concern, raising your prices is not advised.
If you constantly discount, why have a regular retail price? This applies to businesses that are always discounting instead of coming up with decent marketing, or an actual reason to buy. Discounting not only costs you money, but it gives the impression that your normal prices are a rip off. Customers may also hold off buying, thinking that the item that is $100 today may only be $80 tomorrow. It is better to not discount and simply offer more add-on value. When offering a package of deliverables and your package price meets with opposition, don’t discount rather remove one of the deliverables to get within your prospect’s budget.
Know Your Actual Costs
Do you really know how much things cost you? More than likely, everything costs more than you expect. Many of your expenses are never evaluated. If you take some time to find out your actual costs, you can then look at ways to reduce them. By getting quotes on different services and products, you can save substantial amounts of money. There is nothing wrong with shopping around and finding a better deal on everything – you will find one.
Measure Key Performance Indicators in All Areas of the Company
You cannot manage what you do not measure. Make sure everyone measures his or her Key Performance Indicators particularly in the area of productivity and efficiency. By doing this, you will also be ensuring people aim for, and achieve, their own individual goals. This will not only have positive effects on the running of your business, it will have positive effects on your team members as well. Notifying your team of the minimum performance standards that is expected of them can help to fix any problems. What could the best employee achieve in a day? There is nothing wrong with asking your team to work at that level. When you ask more of people, they tend to find a way to stretch and reach the next level.
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