How Have You Managed To Up Your Profit In This Down Economy
By Joyce Oladipo "The Business Growth & Marketing Mentor"
Here is a list of tips, techniques, and tactics I’ve used to kick-start my cash flow, boost my business, and pile up my profits when other businesses are struggling just to survive.
What’s you income goal for 2009?
What’s your plan for accomplishing it?
Here are list of strategies you can used right now to hit those targets this year.
• Focus on increasing the value of each transaction. Consider “deluxe” versions, add-ons, and accessories that compliment client’s original purchase. Once your prospect has mentally agreed to the purchase, they’re much more open to purchasing additional items particularly those that will enhance the original product.
• Become proactive rather than reactive. Most businesses wait for clients to find them. Get out there and market yourself. Let the world know about you on a regular basis. To generate new clients consistently, you need a continuous marketing action plan. Make it a habit to reach new prospects every week – better yet, every day.
• Spend more time marketing to the clients you’ve already won over. This includes current and past clients who haven’t been active buyers for some time. Stay in touch with periodic publications like sending ezines or articles. Write, call, fax, email, or mail information at regular intervals. Implement a loyalty program that rewards clients for their patronage. Get infrequent clients to re-order more consistently by simply keeping in touch and presenting new products and different combination packages. Go back to those who bought from you in the past as they’re much more likely to buy from you again.
• Stay current with local and world events. Consider how these occurrences can affect your business. A new highway can wipe out drive-by traffic to a restaurant on the older route. The recent terrorist attacks in the U.S have had monumental effects around the world. One noted effect is the increase in “cocooning” when people want to spend more time at home with their families where they feel safe. How can you use this trend to your advantage? Think of ways to reach people in their cocoon. Offer shopping-at-home through your website or printed catalog. You could also sell products that enhance the cocoon experience – products for entertainment, security, and extra comfort are some obvious choices.
• Cut your overhead expenses – not your marketing budget. Any inventory is costing you money. Work at establishing a “just-in-time” delivery system that enables you to receive and redirect shipments promptly as orders roll in. The last thing you want is to be sitting on inventory that costs money to acquire and store. Be prepared to pay 5% more to suppliers to house inventory for you until you need it.
• Watch for changes happening around you. Change brings new opportunity. It requires flexibility and the ability to distinguish between genuine trends and short-lived fads. Be aware of changing interests and attitudes. With increased options, the life cycles of many products have been shortened. Shorten the time period required to reach your objectives. Act quickly and cash in. Then, introduce a new product. Re-evaluate your timeframe and focus on quicker results on a massive scale.
• Use information to your advantage. By providing helpful information, you position yourself as more knowledgeable, experienced, skilled, and service-oriented than anyone else in the industry. Information can be produced inexpensively and offered in a variety of formats to provide added value. By offering sound and timely advice, people will trust you and favor you with their business and the cost is negligible. Books, cassettes, CD’s, videos, booklets, articles, and reports can all be effective ways to communicate specialized information. Since they’re not just promotional, these items tend to receive greater acceptance in the marketplace while helping to sell yourself and your company. The idea is to share important information your audience wants. Expose your specific knowledge, skills, and experience and you’ll raise the awareness, positioning, and perception of what you offer. Your intention is to get your message, company name, and your product out there in front of people who have the potential to buy.
• Be careful about lowering prices on your major products. Often a drop in price is the first instinctive reaction at times of slower sales... but it’s usually not in your best interests to do so. A lower price is likely the first way your competitors react. Marketing on price alone is a weak position to take and one that’s virtually impossible to defend. Your competitor can easily and quickly beat you by offering an even greater reduction. If you’re using price as your main strategic weapon, you have no choice but to respond. As prices drop, so do profit levels. This forces you to make cuts in other ways by reducing services, staff, or by squeezing suppliers for better wholesale prices. Selling on price is a difficult and dangerous game as there’s always someone willing to offer a deeper discount.
Come on girls let me know how you have been able to up your profit in this down economy?
~ Joyce Oladipo
Joyce Oladipo, The Business Growth & Marketing Mentor, is creator of the Profit Building system, the proven step-by-step program that shows you exactly how to grow your business fast without spending extra money on marketing. To Add $1,000's In Pure Profit To Your Business and receive her weekly marketing articles on dramatically increasing your income, visit www.BeAWealthyEntrepreneur.com.
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