We all want to grow our business, and by grow, I mean both in sales, but more importantly, in profits. How might you do that?
1. Focus on the 20% - Many businesses waste a lot of money on advertising because they are trying to target “everybody”. They haven’t done the groundwork to identify the right market for their product and services. It will be those 20% of your customers base who buy 80% of your offerings, and make 80% of your profits. You need more of these “ideal clients” than “everybody”. A message targeting your ideal client, as opposed to everybody will cut your waste to zero and start getting maximum return from all your marketing.
2. Fine tune your Unique Selling Proposition (USP) - If you are still competing with other businesses, then your USP needs work. Your USP must target your ideal client; it can’t target “everybody”. Your USP must make your business the only possible choice for your customers. No one USP can be meaningful to “everybody”.
3. Bundle – Bundling is a more sophisticated form of upselling. When you make a bundle of things you are already selling and create a package with a compelling price, you are creating bonuses to the basic offer, and you can often make a lot more money. Sean D’Souza calls it the “Yes and Yes” offer, moving from the “Yes or No” offer. When people are not ready to buy, they are hard to tempt. But when they’re ready to buy, they’re looking for the best deal they can get. If the bonus is structured correctly, people will feel the need to buy the bundle for the bonus alone if it adds real value.
4. Offer more ‘done for you’ products – Done for you products are those products or services which take an idea or concept a person has, and converts it into a complete sales package. Not everyone has the expertise to create the product, let alone put together the templates to sell it. People want more “done for you” offers. They are increasingly more appealing. And they are willing to pay just to get it done. What ‘done for you’ package(s) can you offer your customers?
5. Sell to groups – Most businesses, whether bricks and mortar or online sell one-to-one. But you can sell one-to-many through workshops, training courses (whether offline or online) or webinars. Obviously, there is more time and effort creating the course or webinar, but there can be a much greater return. When you get good at selling to groups you can make significantly more per hour.
6. Get better at email marketing - Competition for attention in your email in-box is at an all-time high. Too many business owners are sloppy and don’t give enough care to creating good, relevant, compelling messages—consistently. Research tells us that email marketing is still the number one way for businesses to communicate directly with customers.
Each year, the (American) Direct Marketing Association ranks marketing channels by the return on investment they generate. Email has lead their rankings for some years; in 2010 they projected that email marketing would return an average of $42 for each dollar spent, down from more than $43 in 2009. Email is the leader by more than a nose; the #2 channel was Internet search advertising, which returned just under $22 per dollar spent in 2009.
7. Resurrect the dead - You might be surprised how many of your customers have “gone missing”. Have a resurrection campaign to restore ‘dead’ customers; previously good customers who have inexplicably dropped off the perch. Bring the dead back to life; this may involve gifts or special offers. It should acknowledge that they haven’t used you for a little while, or that maybe you have done something that discouraged them. Apologise and what you can do to repair the relationship. Give them a reason to come back.
Using one or more of these six tools will increase your income, and profits. Doing all of them could make a tremendous impact. Pick one or two to start and once you’ve implemented them, move on to another one (or two) on the list.
It’s all about sales, and profits. You might find some related blogs of interest:
When clients approach me for coaching, so often, they are not getting the clients they need, the right clients. Eight times out of ten this comes down to not knowing what is working, and what is not working, and why it is not working.
For more than 28 years I’ve been helping small business owners plug the profit leaks in their business and restoring their cash flows by assisting them understand where there profits really come from, where they’re leaving money on the table, and where their sales are costing them profits.
If you would like to discuss with me how you might do that, book a Strategy Consult here.
© Copyright 2017 Adam Gordon, The Profits Leak Detective
Some profit losses are pretty obvious - so you fix them.
BUT, what if you don't know profits are leaking, cash out the door?
Possible leaks could be anywhere.
Are there some clues or symptoms that are tell-tales?