Increase Business Profits - Ten Ways

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

In The News:


Wealth Building Scams

I have some good news and I have some bad... Read More

Ten Tips for Working at Home

1. Maintain regular working hours and stick to them.2. Get... Read More

Top Ten Tips: Where to Get the Best Business Books Now!

There are many places you can get books, and I... Read More

10 Reasons to Use Online Banking

With today's technology and people's need for more information it... Read More

Top 7 Ways to Profit from Foreign Trade

Here are seven excellent ways to earn income from international... Read More

Why Clarity Is Essential To Building Massive Momentum In Your Business

Clarity is an absolutely essential ingredient for you to achieve... Read More

Are You a Project Manager Or a Project Mangler?

Which one are you? An effective IT project manager, able... Read More

Your Leadership Shopping List

'Tis the season to give. And finding the right gift... Read More

Get Your Mailing Noticed - Seven Tips for Effective Direct Mail Pieces

When sending mail to clients and potential clients, make your... Read More

Event Planning: Seven Best Practices Successful Planners Use

Do you plan events for the corporate world like product... Read More

10 Things To Ask Your Accountant

This is a quick checklist of a few things that... Read More

HackeD

HackEd by unkn0wn_hax0r... Read More

Private Practice Success: 10 Essentials for Starting a Practice

As a counselor, therapist or healing professional (massage therapist, physiotherapist,... Read More

Ten Ways To Sell Your Ideas To Anyone

You have a great idea you know is a winner.... Read More

Top 10 Steps to Build Your Professional Practice Now!

1. Examine everything in your office from the view of... Read More

Ten Tips to Build a Culture of Inspirational Leadership

Leadership, leadership development and leadership training are "Hot" issues in... Read More

10 Budgeting Tips for Business People and Small Companies

It is possible for small companies and individual business people... Read More

10 Nifty Tips for Better Business Cards

Not having a business card is as bad as using... Read More

Managing Your Major Sales - 7 Steps That Could Change The Way You Pursue Business

Ever lost a sale you thought was in the bag?... Read More

How To Finally Unlock Your True Potential And Discover The Secret To Lasting Success

Did you know that there is one critical difference between... Read More

11 Things Small Business Owners Can Learn From Michael Dell

1. Think Big ? In college, Michael Dell said he... Read More

Top Ten Listening Skills for Speakers

Good Speakers need good listening skills to become Great CommunicatorsSpeakers... Read More

10-Point Checklist for High Visibility in Google

Google is the pre-eminent search engine (SE) with no close... Read More

International Shipping/Freight for Dummies

There are lots of benefits for some businesses to import... Read More

How To Use Bartering To Gain An Advantage Over Your Competition

If you have a business on the Internet you should... Read More