It’s a jungle out there! In the digital age, entrepreneurs have more opportunities than ever to grow and flourish by reaching a broader market than ever before through the use of social media and digital marketing. But this boon has also led to a proliferation of competition which means that businesses must now work harder than ever to grow their reach and reach new customers while ensuring that they retain existing customers and earn their loyalty. This can’t happen while entrepreneurs are asleep at the wheel. It can only come when entrepreneurs invest enough of their profits back into their business to ensure that they’re able to give the best possible level of service and quality of product to their customers.
In order for this to work, however, profits need to be robust and consistent. If you’ve spent the past few months just getting by, maybe it’s time to look at some actionable strategies to boost your profits. This podcast where JLD chats with Joe Kashurba is well worth listening to, and very inspiring. If you’re after a quick fix, however, here are some strategies that you can use to grow your profits sustainably…
Charge what your products are worth
There’s a common misconception, particularly amongst nascent entrepreneurs that in order to be competitive, new businesses need to be the cheapest in town. While low prices can motivate sales, they can also eat into your margins. Don’t be afraid to charge what your products are worth. The secret lies not in undercutting your own prices but in building value for the customer. People don’t mind paying a little extra, if they know that they’re getting their money’s worth. Just look at the Starbucks business model!
Always Be Upselling
Your employees should never be content with just making a sale. Instead, they should look for opportunities to build value for the customer and the business by upselling complementary products. If you need to make a small adjustment to your markup it’s often worth it in order to get two sales for the price of one. Of course, in order for your employees to be able to upsell effectively their product knowledge must be impeccable and their passion visible. This will ensure that your customers walk away knowing that they got a great deal, rather than feeling as though they’ve had an upsale forced upon them (which is one of the best ways to make sure that they don’t come back).
One of the trickiest balances for new businesses is ensuring that their customers are rewarded for their loyalty while also expanding their reach to bring their brand to new customers. If you’re looking for an innovative way to do this, look no further than the Uber model. The taxi giant’s success lies with their ability to grow their reach by incentivizing customers to stay loyal while also introducing people within their circle of influence to your business. By using a promotional code, they can get free rides for themselves and their friends and family when they refer someone new to the service. It doesn’t take much imagination to see how you can use this to boost your profits.