Is it time to concentrate on new sales to produce profits? After cutting staff, cutting costs to the bone, and continuously working lean and mean, there is no more fat to cut. The only alternative remaining to increase profits is to increase sales.
With shrinking gross margins, family businesses in particular are looking for innovative ways to bring more income in the door. Consider these strategies to boost your revenues and profit:
- Labor Charges – Idle manpower and equipment means opportunity for service income. Can you rent out storage space in your facility? Do you have sophisticated accounting software specific to your industry that you can use to do the books for a similar business?
- New Products – Want to know what you should be selling? Ask your customers!
- Use the Internet – You should have a website and a social media presence. Remind your customers to leave reviews (even offer benefits like discounts if they do).
- Invest in Sales People – By paying your sales force well and then making sure their time is spent with customers, not on administrative paperwork, revenues and profits will follow.
- Email – You can reach all your customers or targeted groups by email. Announce special promotions or sales, or send discount codes to targeted groups.
- Direct Mail – If your customers are more likely to open a physical letter instead of an email, sophisticated mailing lists and mailing services make it a breeze to direct mail special promotion announcements to potential customers in your target area.
- Price Discrimination – Customers will pay different prices for the same product. (Think about airlines where the same seat may go for 10 different fares!) Rush deliveries, perceived premium products and premium service all can command extra profits. Value is in the eye of the purchaser. Find ways to differentiate products and services for “preferred ” buyers.
It’s important to remember that buyers are people. Relationships will still matter. Egos, personalities and personal agendas will still drive the buying decision, no matter how high-tech we become.
