3 Strategies For Increasing Profits
By Charles Hopkins
Published 04/20/2006 | Marketing
It's a simple yet common question, "How can I make my business more successful?"
Success can mean a lot of different things to a lot of different people but when it comes down to it, the success of your business should only be measured by one thing - profit.
At the end of the day, it's not how many people came in to your store or phoned in. It's not even how many widgets you sold. At the end of the day, what truly matters is how much of a profit you made.
It would make sense then that your efforts focus on profit as the end result. With that in mind, there are only three strategies to increase profits for your business.
1) Increase the dollar size of each order
2) Increase the number of times people buy from you
3) Increase the number of people who buy from you
Most likely, your business is already primed to attack each of these three angles and implementing that attack should be fairly easy.
Let's say that you are the owner of Happy Wicks Candle Store. Let your customers know that for every 50 they spend they will receive a free 4-inch candle. When they are eligible for the free candle, offer them the option of upgrading the 4-inch candle to a 6-inch candle for only four dollars.
Implement a customer loyalty program. Whenever a customer spends 200 with your store they receive a 20% discount on their next order. Show loyalty to your customers, too. Create customer-only events and sales, even workshops on how to make candles at home.
Candles are also popular gifts. Be sure to place your contact info on each and every candle. This makes it easy for the gift recipient to purchase from you. Be sure to also use this tactic when co-promoting with similar businesses such as a flower and bath and body shop.
Looking at the example Happy Wicks Candle Store, the tasks of increasing profits was not a difficult one. Truly, it's a matter of putting systems in place that generate increasing profits.
Take a look at your business and examine the systems you have in place. Chances are there's undiscovered profits lying about. Put systems in place to gather those profits and you'll find your business reaching new heights of success.