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Casual Articles - Business Tips - The Ultimate Profit Producing Formula
Unfortunately, most salesmen and women believe that a successful career in sales culminates in sales management and yet there are of course far less management positions up for grabs than sales positions. As a consequence, salespeople with this attitude concentrate on making sales rather than investing in themselves in order to become Top 5 % players and eventually most become disillusioned, resulting in a significant dip in achievements levels.The knock-on effect o
Improving the average transaction size - your total sales over the last year divided by the amount of transactions will give you your average transaction size. Again it comes down to creativity - how can you get customers to spend more. The easiest way is to offer a freebie if they spend over a certain amount. Look at McDonalds with their "Would you like chips with that?"
Improving the average transactions per year - your customer may buy from you several times a year, once
Business owners waste thousands of dollars every year on web sites, brochures, sales flyers, etc. that don’t work. Sadly, these are often projects that shouldn’t have been started in the first place, but no one on their team (or their outsourced graphic designer) advised them it was a bad move. As a result, business owners waste money and eventually become discouraged with taking a proactive approach to attracting new customers – “marketing”. This article f
I see this happening very often in small businesses. The owners start out enthusiastically, then experience all the extra paperwork, organising and chasing that needs to be done and slowly the novelty wears off. For the majority of business owners it gets too hard and they give up, adding to the high failure rate of small businesses in the first 12 months.
It doesn't have to be like that!
There may be some tough times in any small business and there is nothing worse than wondering if you are going to sell something today. Wondering if the sales in the month will be enough to cover the bills. As a business owner you need to know, with a level of certainty, what your income will be next week, next month.
In lean times it may seem that the only solution is to cut costs, like cutting back on the advertising budget. But by cutting back on costs you may save 10% or maybe even 20% but it is far better to improve your income by 50% or 60%? There is a limit to how much you can cut costs but there is no limit to how much you can improve your income.
Take the time and energy that you would normally use to try and save money and refocus it on 4 areas of your business:
- Improving enquiries
- Improving the conversion of those enquiries
- Improving the average transaction size
- Improving the average transactions per year
Focusing on these 4 areas of your small business is guaranteed to ensure success. A 10% improvement in each area will multiply to a huge increase in profit.
Start measuring these 4 areas and keep a record of the results on a weekly basis. Your goal should be to gradually improve all 4 areas by 10% per month.
Improving enquiries - being creative in generating enquiries is the secret to customer attraction. The coffee shop offering a free muffin will win over the coffee shop next door without the free muffin. Find a point of difference... ask yourself "what will make a customer choose me over my competitor?" And when you find your unique selling proposition shout it out in every way you can possibly think of.
Improving the conversion of those enquiries - after all the cost and effort of attracting a customer it's now up to you to sell them something. You need to answer every objection, have a strong risk reversal guarantee with a product and service range for all their needs. Often this area can be dramatically improved in many businesses. I ask businesses what they believe their conversion rate to be and they usually say around 50%... They are always shocked when they start to measure it and it is less than 20%. This is a good thing though, as it leaves lots of room for improvement!
Improving the average transaction size - your total sales over the last year divided by the amount of transactions will give you your average transaction size. Again it comes down to creativity - how can you get customers to spend more. The easiest way is to offer a freebie if they spend over a certain amount. Look at McDonalds with their "Would you like chips with that?"
Improving the average transactions per year - your customer may buy from you several times a year, once
Power tends to corrupt and absolute power corrupts absolutely. When you are the boss of others, the temptation to use your power to control them is always there. However, if you start using this power too much it can bring disorder to your office environment.Think of how you would feel if you had a boss always driving you around. Would you like to work for someone like that? If your hard work was never appreciated, would your motivation last? Definitely not! Therefor
In lean times it may seem that the only solution is to cut costs, like cutting back on the advertising budget. But by cutting back on costs you may save 10% or maybe even 20% but it is far better to improve your income by 50% or 60%? There is a limit to how much you can cut costs but there is no limit to how much you can improve your income.
Take the time and energy that you would normally use to try and save money and refocus it on 4 areas of your business:
- Improving enquiries
- Improving the conversion of those enquiries
- Improving the average transaction size
- Improving the average transactions per year
Focusing on these 4 areas of your small business is guaranteed to ensure success. A 10% improvement in each area will multiply to a huge increase in profit.
Start measuring these 4 areas and keep a record of the results on a weekly basis. Your goal should be to gradually improve all 4 areas by 10% per month.
Improving enquiries - being creative in generating enquiries is the secret to customer attraction. The coffee shop offering a free muffin will win over the coffee shop next door without the free muffin. Find a point of difference... ask yourself "what will make a customer choose me over my competitor?" And when you find your unique selling proposition shout it out in every way you can possibly think of.
Improving the conversion of those enquiries - after all the cost and effort of attracting a customer it's now up to you to sell them something. You need to answer every objection, have a strong risk reversal guarantee with a product and service range for all their needs. Often this area can be dramatically improved in many businesses. I ask businesses what they believe their conversion rate to be and they usually say around 50%... They are always shocked when they start to measure it and it is less than 20%. This is a good thing though, as it leaves lots of room for improvement!
Improving the average transaction size - your total sales over the last year divided by the amount of transactions will give you your average transaction size. Again it comes down to creativity - how can you get customers to spend more. The easiest way is to offer a freebie if they spend over a certain amount. Look at McDonalds with their "Would you like chips with that?"
Improving the average transactions per year - your customer may buy from you several times a year, once
If you're business is not offering credit card payments, you could potentially be losing out on a tremendous amount of business. Because of the options you give customers by offering credit card payments, it creates a wider customer base. However, the first step to offering credit card payments through your business is setting up a merchant account.A merchant account is a bank account that is established by your company to receive the payments from credit card purc
Focusing on these 4 areas of your small business is guaranteed to ensure success. A 10% improvement in each area will multiply to a huge increase in profit.
Start measuring these 4 areas and keep a record of the results on a weekly basis. Your goal should be to gradually improve all 4 areas by 10% per month.
Improving enquiries - being creative in generating enquiries is the secret to customer attraction. The coffee shop offering a free muffin will win over the coffee shop next door without the free muffin. Find a point of difference... ask yourself "what will make a customer choose me over my competitor?" And when you find your unique selling proposition shout it out in every way you can possibly think of.
Improving the conversion of those enquiries - after all the cost and effort of attracting a customer it's now up to you to sell them something. You need to answer every objection, have a strong risk reversal guarantee with a product and service range for all their needs. Often this area can be dramatically improved in many businesses. I ask businesses what they believe their conversion rate to be and they usually say around 50%... They are always shocked when they start to measure it and it is less than 20%. This is a good thing though, as it leaves lots of room for improvement!
Improving the average transaction size - your total sales over the last year divided by the amount of transactions will give you your average transaction size. Again it comes down to creativity - how can you get customers to spend more. The easiest way is to offer a freebie if they spend over a certain amount. Look at McDonalds with their "Would you like chips with that?"
Improving the average transactions per year - your customer may buy from you several times a year, once
Determine your ideal career--one that's in alignment with your values, passions, and talents--and discover the work you were born to doCareer discovery is the process by which a person identifies their ideal career path, thus saving themselves a lot of time (and money) by not pursuing career choices that they will ultimately find unfulfilling. To find your true calling, you need to dig around and find the things that are important to you--now, and in the futu
Improving the conversion of those enquiries - after all the cost and effort of attracting a customer it's now up to you to sell them something. You need to answer every objection, have a strong risk reversal guarantee with a product and service range for all their needs. Often this area can be dramatically improved in many businesses. I ask businesses what they believe their conversion rate to be and they usually say around 50%... They are always shocked when they start to measure it and it is less than 20%. This is a good thing though, as it leaves lots of room for improvement!
Improving the average transaction size - your total sales over the last year divided by the amount of transactions will give you your average transaction size. Again it comes down to creativity - how can you get customers to spend more. The easiest way is to offer a freebie if they spend over a certain amount. Look at McDonalds with their "Would you like chips with that?"
Improving the average transactions per year - your customer may buy from you several times a year, once
In the world of today you must be able to think creatively in order to promote your business. One way to do this is by starting and maintaining a blog. A blog can increase profits in your product or service business in a relatively short time.A blog is short for web log. They are web sites that are set up by several different companies so that people can choose a simple template and format to present their information on the internet. Blogs are extremely popular, but
Improving the average transaction size - your total sales over the last year divided by the amount of transactions will give you your average transaction size. Again it comes down to creativity - how can you get customers to spend more. The easiest way is to offer a freebie if they spend over a certain amount. Look at McDonalds with their "Would you like chips with that?"
Improving the average transactions per year - your customer may buy from you several times a year, once a year or even once every 7 years. So how could you encourage them to come in more often and buy from you? What other product or service could you offer them?
Whether you are a plumber, a salon owner or a dentist, focusing and improving on these 4 areas will guide you to business happiness and prosperity.
Copyright 2006 Ian McConnell
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