Question 2:
How do I increase my profits?
Trick 2:
Typically the three ways to increase profit are:
increase your sales volume (leaving everything else the
same), increase your sales price or reduce your costs.
The first technique in boosting profits is developing a good
rapport/relationship with your existing customers, as mentioned earlier. This
will help increase the value of your average sales transaction and the number
of times customers buy from you.
The second method was increasing the number of customers by partnering up
with other businesses and sharing your client base. That way you both grow
your business influence and create a more dominant market presence.
Or,youcantapintoothernewclientbase’sForexample, a dietitian can give
a nutrition or weight-loss talk to clients of a personal injury lawyer and
chiropractor. This works because the lawyer and chiropractor see this as an
opportunitytomeeteachother’sclients. They invite prospects and provide
the space. After the event the dietitian follows up with a CD of the talk or
other valuable information.
Increasing your sales price is, of course, another way to raise your profits.
As most business owners, you might think that price is the number one
purchase criteria with your customers. Research studies show however that
selection, customer service, quality and confidence in the product/service are
usually equally or more important.
And most of the time this means that you may be undercharging and earning
lower profits than you could. To overcome this stumbling block all you have
to do is persuade customers that your product/service is different. This is
often referred to as differentiating your product/service. After doing that, you
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