I recently shared with you my top 5 Ways to Increase Your Profits, and the response was very positive. So much in fact, that I would like to share you with 5 more simple things that you can do to increase your bottom line without working more hours.
- Increase the average unit of sale.
How can you get your customer to buy more from you? Can you package and bundle? Can you upsell and cross sell? Can you increase pricing? Can you increase the size of the "default" offering you present to them?
- Accelerate consumption and repurchase.
One chain of hair salons we coach work with their customers to come in every 4-6 weeks. They know that when they come in frequently, their customers look their best. And the salon is maximally profitable.
How can you design your product or service so that your customers "consume" it faster and repurchase more frequently? How can you train them to get optimal results by using your product or service faster? How can you spark your customers to repurchase? How can you make repurchasing easier?
- Negotiate Hard.
Every dollar saved in the expense column drops directly to your bottom line. Make sure you pause before you go into buying situations with vendors and suppliers and think through your negotiation strategy.
Remember, they do the same negotiation hundreds of times every year, while you likely only buy this product or service a few times a year. The cards are stacked against you, so make sure to take a moment to swing them back in your favor, by adequately preparing before that buying conversation.
- Increase Your Utilization.
Do you really need more office space or could you redesign your existing space to work better? Could you give some of your staff the ability to work remotely to take some strain off your space and save money every month?
What about your staffing levels? The next time someone leaves (or you let an employee go) pause before you reflexively rehire that role. Many times you can simply absorb that person's function with your remaining staff, adding $50,000 or more to your bottom line.
- Accelerate Your Production Cycle.
The faster you produce, the lower the overhead burden per project or product you make for your clients.
You get to bill sooner, collect faster, and keep your staff and equipment optimally engaged. So, look for ways to speed up your production cycle.
And here's one more bonus way to increase your company's profitability...
- Engage Your Team.
Don't look for ways to increase profit all by yourself, ask your team to play too. Give them a platform to give suggestions and take action steps to increase revenues, margins, and decrease expenses. It's in everyone's best interest for you to operate more efficiently and serve your market better.