There are basically 4 ways to significantly increase your profits. Simply focus on these in everything you do, and you will be guaranteed to grow your business.
1. Get more customers
The traditional line is that you have to get more customers. 80% of most companies’ energy is about acquiring new customers. And yes, while this is a legitimate way of expanding the business, it may not be the most strategic, nor the most cost effective. Don’t get me wrong, every business needs to continue reaching out to new customers, but many ignore the potential right under their nose while doing so.
2. Get more from existing customers
What about all those hard won customers you already have? Your customer base is actually your most important way of achieving growth. They already know you, already like you and already have a purchasing relationship set up with you. So now you just need to think about how to get more share of their wallet. Getting more out of existing customers is more often less costly and more efficient than getting new customers. Look at your current customers and ask yourself what other services or products could you provide them? How could you encourage them to use your existing offer more often?
3. Raise prices
Are you really sure that you are asking for a price that is equivalent to how your customer values your product or service? Approximately 80% of businesses undercharge. Most often people don’t buy on price, and you’d be amazed how you can increase your bottom line today just by tweaking your prices slightly.
Cut costs, negotiate production deals and get higher margin on what you are producing.
Want to find out how to better achieve these 4 points? Then have a look at our book of marketing tips.