How do you increase business profits? Answer the following questions carefully, and you'll have a good start.
1. Can you increase the average sale? A restaurant with 25% profit margins might make 50% on additional sales to existing customers (less labor to bag one large order than two smaller ones). Asking "What would you like to drink with that?" works, and it's just a start.
2. What's the least expensive way to get a customer? Before you spend another thousand dollars advertising to get new customers, could you get as much business by spending a few hours contacting previous or existing customers?
3. What low risk ideas can you try? I once sent a letter to several visiting basketball teams, inviting them to visit our restaurant, and giving the coach a free meal as an incentive. The cost? Two dollars. The pay off was two busloads of customers. At that rate, you could increase your business profits even if nine out of ten ideas fail.
4. Have you tested prices? I knew a store that sold a product for a $1.05, that cost them $1.00. At a price of $1.20, it is doubtful that they'd lose half their sales, but if they did, they'd still make twice the profit. Some things even sell better at a higher price. Test.
5. Can you measure your advertising results? How do you know that you're not spending more for a customer than they're worth? Coupons, customer surveys and other methods of measurement are a must.
6. How do you know your customers are satisfied? The worst restaurant meal we ever ate went down without a comment, but we never returned to that restaurant. Maybe the owner should be talking to the customers.
7. Can you enhance the percieved value of your product? Years ago, I sold walking sticks for $10 at flea markets, and $20 at craft shows. Sometimes location alone can enhance the percieved value of a product. What else can you do?
8. What are similar businesses doing? See what your successful competitors are doing. Can you do the same?
9. What other products can you sell? There's a reason stores have candy and magazines near the checkout. Extra sales are a great way to increase business profits.
10. Can you use your customers as salesmen? Word of mouth is a start, but what other ways can you get your customers to bring their friends to you?
These were culled from a longer list. I call it "stolen business ideas," because I can't credit the original authors. I took them where I found them over the years, with grattitude, but without notes.
Steve Gillman has been studying every aspect of money for thirty years. You can find more interesting and useful information on his website; http://www.everythingaboutmoney.info
recurring maid service Wilmette ..mistake #1: rely just on financial statementsProfit and loss, revenue... Read More
1. Combine Emotion and LogicConsumers buy because the want to... Read More
In building and runnng an independent private practice or small... Read More
Here are some simple tips to help you improve your... Read More
So how do you eliminate your competition without bloodshed? You... Read More
1. Locks and Padlocks ? Locks on all outside entrances... Read More
Gas prices continue to go through the roof and increased... Read More
Talk to Your People Often By building a great... Read More
Seven Reasons Why Training Doesn't Produce the Desired Results and... Read More
The 2004 election is over--at least in the minds of... Read More
How do you focus on your urgent e-mail and organize... Read More
Many new coaches struggle to attract their first client. Often,... Read More
Looking for an old friend? Want to know if your... Read More
Do your remember when you first ventured out in the... Read More
Leadership, leadership development and leadership training are "Hot" issues in... Read More
Your business card is a valuable piece of real estate... Read More
Proofreading may not be terribly fun, but it's one of... Read More
Are you not sure what Business to buy? Need to... Read More
1.) Brainstorming for an idea - You must select what... Read More
Having business partner or planning to start a business with... Read More
What is a niche business? A niche business is one... Read More
Do you find great joy in being a coach? If... Read More
Buckling under the weight of chronic corporate restructuring, and frustrated... Read More
Cross cultural differences can and do impede upon communication and... Read More
Many mistakes can be made in business and if you... Read More
last minute cleaning help Highland Park ..Rut -- a routine procedure, situation, or way... Read More
As a counselor, therapist or healing professional (massage therapist, physiotherapist,... Read More
Cash is king-so they say. If you work for yourself... Read More
1. You have a big goal and you want someone... Read More
Studies have proven that there is one reason why people... Read More
At Macquarie University in the early '90s, three Australian early... Read More
Gas prices continue to go through the roof and increased... Read More
1. Get to know people. First meet those people in... Read More
If you're a business owner, you know that repeat business... Read More
So you have set up your company, fairly established and... Read More
The 9-to-5 grind can make you feel like a just... Read More
In Jack Canfield and Mark Victor Hansen's original "Chicken Soup... Read More
Clarity is an absolutely essential ingredient for you to achieve... Read More
How's your business going to keep growing with the holidays... Read More
Only one of every 5 businesses makes it to its... Read More
Use the checklist below to make sure your article, tip,... Read More
1. Combine Emotion and LogicConsumers buy because the want to... Read More
I believe some people create and publish websites for the... Read More
Talk to Your People Often By building a great... Read More
1. Think Big ? In college, Michael Dell said he... Read More
Although dentistry may appear to be different than other types... Read More
1. Locks and Padlocks ? Locks on all outside entrances... Read More
1.) Brainstorming for an idea - You must select what... Read More
Here are a few ideas to get you started, all... Read More
Are you scratching your head after business events wondering why... Read More
Top Quick Tips |