DEAR ENTREPRENEUR, YOU CAN BOOST YOUR PROFIT
Dear entrepreneur, it deeply displeases me that you are making a lot of efforts to sell and at the end of the day, there is an ugly story hovering around you – You are not making profits. I wish I could tell you that you only need to take one decision to achieve profitability but the truth is that you need to make many deliberate small changes that will eventually boost your profit.
Here are few ways to give your profit the needed boost:
Bank on bundle products
If you are really keen on making profit then you need to realise that you have to increase the number of sales you make. Look for ways to bundle products and or services so that you increase the average ticket price of every sale or you can make available your products and services in larger purchase sizes.
Inventory and stock taking is essential
Be well informed about your inventory and stocking levels. Get clear on all the costs of inventory: the cost of capital, storage or insurance. This will help to keep track of unnoticed losses, waste or theft.
Reduce your customer’s frustration
The last thing that your clients or customers want is experiencing difficulty while trying to access your products or services. Make buying from your easy and simple. Reduce barriers to entry, frustrations or hurdles to re-purchase.
Increase your pricing
Businesses only make nominal increases to pricing every few years, but rarely do the owners ever sit down and fundamentally rethink his or her pricing model. If it’s been over a year and making profit from your business seems to be a bleak possibility, then it’s time to have a review.
You want to get more done with who you have. Are there jobs you’re hiring others to do that you could possibly complete with staff? Do you really need to pay an office assistant when you have a cleaner?
The act of being Santa Claus in your business might be a nice gesture but if it goes way beyond your finance to cut off your profits. You should consider limiting the amount of discount you give out.