075 | Increasing Your Profits
It's on everyone's mind right now with the changes in employment and inflation on the rise. How do I keep my profit margin increasing when money is tight and costs are on the rise?
We've got 3 Top Tips for Increasing Your Profits.
1. Drop Low Volume Customers
You should look very critically at customers that are low profit or low volume. Explore ways of improving the profit margins you make with these customers by changing the prices they pay, increasing their volume or placing them on a set subscription rate to maximize time spend.
Be prepared to lose a few customers on the way and not fret. Doing this means you can allocate more of your time and resources to customers that are profitable.
2. Increase Your Prices
When was the last time you increased the prices of your products or services? Is a price increase justified because of increased costs or changing market conditions? Does the value of your service justify an increase in price?
If any of these apply, you should look at increasing your prices. You can do this gradually as customer contracts come up for renewal, or you can do it in a single initiative.
P.S. As a Bonus ... we've included a number crunching tool that may help you calculate what your margins need to look like to reach sales targets.
3. Focus on High Conversion Advertising
Look for ways to convert each lead into a customer. This isn't a popularity contest anymore on how many likes you have, or impressions, or even about how many advertising channels you use that are trendy. Find the highest turnover conversion you can with as minimal dollar spend and automate it to decrease unbillable time spent.
This will be different for each business depending on whether you sell product online, are a restaurant or sell professional services.
And as always, we are here to help! Contact Us with your questions.