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Hi Claudeville,
In this Newsletter [CMA NL] I will show you four fundamental ways to increase your company’s revenues, net profit and overall value.
Importantly, don’t discount any of these ideas. It’s too easy to say “I’m already doing that,” or “that won’t work in MY business.” When, in fact, in most cases you can 1) do a better job doing what you’re doing, and/or 2) creatively adapt the idea in your business.
So have an open and creative mind, and get ready to learn some great ideas to take your business to the next level.
Here are the four methods:
- Sell to and serve more people
This one is obvious- get more customers. So, break it down further and look into all the possible channels by which you can advertise and reach new customers. Print, internet, signs, trade shows, direct mail, and so on.
If you’re like most of us, you’re probably advertising in some places but not yet in others. You need to start testing lots of different marketing channels to find new ones that can work for you. Start with the one that stands out as the one most likely to pay off. (getting the most qualified people to contact you per dollar spent).
Remember, the more marketing campaigns you try, the more likely it is you’ll find the few that are solid gold. And these oftentimes become long-term assets, generating you profits month-after-month, year-after-year.
- Increase your average order size
Restaurants know this one well. Once someone has come in to your store (or online property, or calls you) your goal is to maximize their total order amount. In doing so, you should simultaneously maximize your revenues and completely fulfill the needs of your customers.
And it doesn’t have to be done obnoxiously. For example, when you’re in a restaurant and the waiter suggests entrees, appetizers and/or asks if you want dessert, it’s not seen as being pushy, and maximizes the restaurant’s profits.
Another example of this you may have seen if you’ve rented a U-Haul or moving van. In those stores, you’ve probably noticed all the packing and moving supplies they sell. You could add to your customers’ order sizes by finding out what accessories or related items they might need, and have them available.
Online, you can see this done when you’re adding items to your cart and going through “checkout.” Often, other items are suggested at the last minute when you’re in buying mode. Amazon.com is the master of suggesting products (think “Those who bought X also liked…”) and it’s no wonder they have one of the highest conversion rates among online stores.
- Increase order frequency
How often do your customers need your product or service? Is it something totally out of your control, like a real estate client not needing to buy another house for several years?
Or are there things within your control that can help customers to come in more often or purchase more often from you, like a restaurant inviting its customers in for specials on slow nights?
Loyalty and reward programs can help make this happen. For example, most coffee shops will give you a card to punch each time you buy a coffee to get the 10th one free. If you have 7 of 10 punches already, you know you’ll be a little more likely to choose that place over others to get your reward sooner.
Continuity income is another huge one. If you can offer any kind of product or service on a recurring, monthly basis…do it. A winery or liquor store could offer a wine-of-the-month club. Bakeries can offer weekly batches of cookies to local businesses for team meetings.
The odds are that whatever you’re offering, a certain percentage of people want it every month like clockwork and will pay accordingly for it.
- Increase your monetization methods
Lastly, look for your business’ byproducts that might be of value to someone else.
An example of this is when sawmills and furniture manufacturers stopped throwing away the tons of sawdust accumulating on their floors, and began selling it to other businesses who could use it (such as for making “starter logs” for burning in your fireplace).
Another interesting example is a group of real estate investors who built a brand around their vanity number, 1-800-NO-AGENT, offering homeowners a chance to sell their house to them at a discount instead of listing it and waiting.
They found they could sell the leads (those who responded but didn’t’ want to sell to them) to local real estate agents (who would contact them to see if they could represent them). The company ended up generating nearly as much revenue from selling “dead” leads as it did from their core business of “flipping” houses!
Doubling revenues just by thinking outside the box…that’ll add value to your company.
Hopefully as you read through these value-adding methods, you will be able to find things you can do right now to increase your revenues and profits. At a minimum, add one new idea to your To Do list to accomplish in the next 30 days. And you’ll start seeing the benefits!
To your every success
Claudeville Mc Garrell
Founder & CEO
CMASSOCIATES-The Business Success Academy
https://cmassociates.coachesconsole.com/
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