Here’s a question – what would be on a list of all the things you could do in order to increase your profits….??
I think the following probably sums it up:
The big three are
– Sell more
– Put prices up
– Reduce costs
And if you do one of these it affects the other two – so it’s a tricky game
Everything else that you might suggest will contribute to these big three, often giving you a gain in one or two but losses in another – like this:
If you look at the big three, which one is easiest?
“Selling more” is a big ask, in fact you might already have most of your market. And it’s expensive to do.
“Reducing costs” is tough, unpopular, and often adversely affects sales and quality.
“Prices up” is the one – you can do that instantly! The only question is whether it’ll lead to a big drop on sales – and there’s only one way to find out! Ideally as experimental pricing – just change them a little in a small area and see what happens. If nothing, try it in other areas, and keep creeping those prices up till you find the optimum point.
onwards and upwards!
PS Customer Care comes out all from the above chart doesn’t it? Cheap to do, and can have a big effect on sales, even lowing you to charge more and get away with it. So never forget customer care, it’s the ‘poor relation’ of sales and marketing.