Small changes can often have the biggest impact on our businesses
By tweaking a number of things in your business by just a small amount, you can achieve a significant cumulative effect over the course of the year.
Here are 5 strategies you can use to grow your revenue and profits by simply changing the way you sell your products or services.
1. Price Increase
It may seem obvious, but the quickest way to increase revenue and profits is by increasing your prices. However, in fiercely competitive markets this may not seem possible. But the chances are if you were to increase your prices by just 5% it would have little or no impact on your customers and sales, but will instantly increase your bottom line.
2. The Order Bump
This strategy has been used by Amazon for years and is now widely used in many foodservice outlets too. But it can work for almost any business. When someone orders from you, simply offer a small additional product or service which complements their purchase, for a small additional cost. For example, if someone purchased a torch, your order bump could be batteries or an extra mini-torch.
3. The Bundle
The idea here is to bring together 2 or more complementary products or services that naturally work together to provide a ‘packaged solution’ for your customer, rather than just a single product or service purchase. With your ‘bundle’ you can offer better value to your customers and have a new marketing angle to generate increased sales from new and existing customers. A good example is M&S’s Dine-In For £10.
It’s always worth taking a look at your existing products and services to review how you are selling them to your customers. The fact is that your customers’ buying habits and behaviours are constantly evolving, but your marketing and packaging may not, so it could be time for a refresh. Repackaging your products or services could be an ideal opportunity for you to review costs, increase prices and target new audiences.
If your business has repeat purchase customers, even if they are only buying 3 or 4 times a year, it’s worth offering a subscription service. This could provide your customers with time and cost-saving benefits, and give you greater predictability in sales and closer customer relationships, opening up the opportunity of regular purchase upgrades and customer referrals etc.
If you’d like to learn some more business growth ideas and strategies, then come along to one of our weekly Bizmosis® events.