Would you like another $30,000 on your bottom line today?
Do you know the difference between increased sales versus increased profits?
When I speak to business owners, often, the focus is on getting more sales, when in fact the focus must be on making more profit.
It’s too easy as a small business owner to get caught up in the mindset of needing more sales, more sales, more sales…
What that does is it creates a negative impact of lack, which effects your bottom line.
When pushing for more sales, it’s easy to slip into the fold of discounting prices to win the business.
There is so much competition out there, that “Joe blogs” next door will do the same for a fraction of the price.
What that does over time, is you ending up working for free. Meaning you are not making any profits and your business will not succeed.
Here’s a great example.
I was with a client of mine and we’re going through some facts and figures of their business looking to increase their profit.
Within 15 minutes, I identified $30,000 of potential dormant revenue that could be added straight onto their bottom line (pure profit), without doing any more sales!
It comes down to pricing.
This is where a good business owner understands the difference they bring to the marketplace. What is your genius, your expertise, your point of difference you can leverage off?
Then it no longer becomes a price driven conversation with your clients.
I recommend to my client to marginally increase their prices by 9%. It’s added a further $30,000 to their bottom line over the next 12 months, without the need to find extra customers (sales).
If we think laterally for a moment, how many new customers do you need to find to make up that extra nine percent. All the extra marketing, phone calls, follow ups, staff and extra stress, to get another 30k of new business in the door, that was already there, unrealized.
When it comes to our business, yes, we need more sales. It’s a given. But when we get better with our processes, with our procedures, with our systems, with our strategy and with our pricing, we can make more profit from what’s already there.