It's not like you're being greedy or anything, or not being contented with what you have been blessed with - but it's more of a personal pursuit for a brighter future for your future generations? After all, who wants a temporary, or a mere 5-year business?
So what are the top three ways to increase your business profits?
Increase your sales volumes. How do you increase sales? Try starting with better and more reliable publicity. Re-align your marketing objectives, and use more of the tactics that helped push sales. If you enjoyed a considerable increase in sales by introducing an incentive program for customers, like entitling them to a 20% discount when they bring in 10 additional new customers, then by all means - do so! Employ the global publicity the social media networks offer. Open a Business Facebook account, or a website where clients can purchase from the comfort of their homes. You may also introduce new products which are more high-end - if you do have the advantage of having wealthy clients. Remember, the higher-end the product, the bigger the chance to pad up prices.
Increase your sales prices. Don't be too generous to your clients by selling items at extremely low prices - almost at cost. Try to re-compute costs entailed to produce your products and mark up to a considerable, but still affordable price. Be careful not to overdo it, though - as customers tend to patronize sellers with the lower prices, especially for non-essential items (like shoes, clothes, cruises, etc). The general rule is, people will plunk in more of their money if they know that it will save them more in the long run. Example - a client will buy a 50-dollar small appliance, if it is reliable, and may not require a change for the next 3 years at the very least. Invest in some research though, because if you sell a 50 dollar appliance when your competitor is selling it at 10 dollars - well, that's something to think about. Don't give the client any reason to switch loyalties!
Reduce your costs. This is the problem of most businesses - they do enjoy hefty sales, but their costs seem to leave very little left. Go back and re-asses when and where you are spending too much. Maybe you should start changing suppliers, perhaps? If not, maybe you can negotiate better deals with them. Shop around for new suppliers and assess if your current options are the most reasonable. If some of your customers are beginning to cost you money by tying up the phone lines with their incessant complaints, then do your employees and your business a favor by encouraging them to try out other seller who "may probably make them more happy." Let them know that you can no longer tolerate their whining, as they cause you and your entire team to lose morale. Another way to reduce costs is to renegotiate your rent.
Most landlords would rather settle for less rent than to end up with an empty office space that does not earn money. Try it - tell him that you can no longer afford the old rates, and your business may suffer if the high rental payments continue. If he doesn't agree, then shop around for a better location. Don't be scared to transfer into a smaller space, especially if it will make no huge difference on your current patronage. Lastly, implement systems in the office which will help reduce costs on electricity, and other supplies-related things. Employ a system eliminating overtime, as this amounts to a hefty increase in both your power bill, and may increase the amounts you have to pay employees on overtime rates. Remember that there will always be employees who purposely extend working hours just to increase the take-home pay. Make it clear that you will no longer tolerate it - and unless they apply for overtime work (yes, some companies implement this system - they ask employees to submit a "request to go overtime" form if they feel they need extra time to finish everything necessary). NO Overtime form = NO Overtime pay. Notice that suddenly, most of your employees magically finish their work on time!
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