The 4 best ways to do more, yes, Silver
However, despite this obvious rule, some budding entrepreneurs get lost on the way; they are stuck in the “busyness” of management of a company and the incessant drive to keep the cash register ringing continuously. And in this regard, they made the mistake of thinking that “make sales” means “making money”.
They fell into the trap of neglecting to ensure that their businesses are actually earn enough to cover costs and take home a healthy pay check.
Do not be. Instead, do the math to figure out where one is installed after your head is covered. Avoid sales continue offering big discounts that only cut their profit in the bone (or worse movement: the distribution of free products and services when they really can not afford).
Do you really want to be the owner does not receive any salary? Otherwise, follow these four simple tips to build a business of millions of dollars this year:
1. Price for profit.
It is natural to want to come face to face against competitors in its market, but should not undermine their prices in hopes of getting more traffic to your business. This comes to take money from your pocket. This devalues ??your business and sets a precedent that says your only recourse is to lower prices. Once customers find a cheaper alternative, they will abandon ship.
If you want to make more money in 2016, then you will have to increase their prices. Look where are your costs and determine your breakeven. Then look at the prices of their competitors. When setting the price, do not be afraid to be the highest in the market or increase their prices if you find that you are not a high enough price.
However, remember that you will not be able to successfully execute if the value of your products and / or services justifies the change in the rate.
2. Press the right products.
If you have different products and service offerings, then it is likely to have different potential profit. When the difference between the product margin know, you know which one will bring the most benefit. Then you can significantly increase the amount of money that has made this year, working with his team to promote products and services with a higher margin.
Do you have a product with a lower price, but the highest margin? That’s where you want to focus your promotions. The dollar value of individual sales may be lower, but to put more money in your pocket at the end.
3. coda discounts.
At the highest level, upgrading makes sense from a marketing and sales perspective – especially if you work through a bit of a crisis. It hopes to attract new customers mass that may have never known before their mark, and their cuts are a stimulus for the purchase thanks to a special offer or agreement.
While all this may seem like a brilliant strategy, the update may cause serious damage to your business in the long term in a number of ways:
You are training customers to buy from you only when there is a special offer or a discount on the product / service they want.
the perceived value of your products or services on the basis of the price drop. If you go with a reduction in hand, the value is destroyed immediately.
trust is lost. How would you feel if you were presented with the “best I can do” prize, she said no and then offered a discount? If you’re like me, I guess honesty and integrity company immediately challenged.
Above all, it will cut into their profits. So kill reductions and focus on value because the numbers show that customers back where their profits are. In fact, a customer who bought you at least twice before nine times more likely to convert a first time customer. Why offer a discount when the customer is ready to buy?
Take full advantage of these sales. Have confidence in your product or service, and how it adds value to your target audience. Then price accordingly and sell it.
4. Cut the fat.
Do you how your inventory is related to slow values ??as underperforming know? Can you easily identify people within your team who are just along for the ride? When you can trim the slow items (and people) can run that money added more products with the highest sales volume. Or, if you are a service company who are struggling to attract some customers, how you can add value or resources to services that keep them full of reserves.