The four ways to improve your Profit

You’re working too hard to not have the profit you need.

You sell your products and services, but realize that after each month, you’re no further ahead.

Your bank account is dismal and there doesn’t seem to be much left to invest back into your company.

Does this sound familiar?

If so, you may be suffering from the profit conundrum.

This is suffered by those businesses who are selling, but not making any money.

This is no bueno.

If you’re not familiar with the 4 Levers of Profit, then you’re going to love today’s article.

Let’s dive in!

If you explore these 4 Levers of Profit in your business, you’ll be able to solve this conundrum in your company.

• Increase your prices

  • Perhaps the reason you aren’t able to retain profits is your pricing is too lean. Take a look at where there could be opportunities to price and position your products and services differently. Or could you create packages? Increasing prices doesn’t have to mean an increase across the board, but you can take it up a notch to look at which offerings are not well priced and where you may be even losing money.

• The Cross-Sell

  • What else might your customer need that you provide? On my regular visits to my hair stylist I’m always asked if I need to replenish my hair or skin products. This is the perfect example of the cross-sell. Some visits I do buy and some I don’t. But I’m there, I like and use some of their products, and I use the opportunity to get what I need. Using this strategy works well when you have other valuable offerings. Win-win.

• The Up-sell

  • Take a look at what your customers buy from you now. What else do they need that could be an extension of what they buy from you? How else can you add value after they use what they need? The up-sell is usually something of higher value or perhaps priced at a premium. If you teach a group right now and one of the members wants to continue that work and work with you personally, this personal attention or private service would be considered an up-sell because it’s generally priced higher and of perceived greater value than your group class.

• Cut expenses

  • We can’t have a conversation about profit without calling out expenses. Taking a good hard look at the costs to provide your products and services and your general overhead costs is always a good approach. Consider doing a review of your expenses often. See what’s necessary and what isn’t. How can you pay for things differently? Are you on the right subscription plans?

If you look at your business using these 4 levers, you’ll be able to identify an opportunity or two to start bringing in healthier profits.

You and your business will very happy you went through this exercise.

If you have a colleague or business partner who would benefit from this information then hit ‘forward’ and please share it with them.

NOW is YOUR time.

Ariana

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Canadian Business Coach, Canadian Executive Coach, Business Coach in Canada