Would you like to increase your small business profits without a lot of hassle? Here are 5 basic ways to increase the profits of any business of any size:
Get more leads – This requires contacting more people or attracting more potential customers to contact you, in a consistent manner.
- Increase conversions – This is the percentage of people who interact with your business and choose to buy. For example if you interacted with 5 potential customers a day and 2 of them bought from you, your conversion rate would be 40%. Do this every day and you can really boost your income.
- Increase your average sale – If you can get 2 customers a day to buy at the $100 level instead of the $40 level, you have increased your average sale by 250%! Be sure you always have higher-priced products and services to offer those who are interested.
- Increase the number of transactions – Aim to get each customer to buy more often, or to have more customers buying every day.
- Increase profit margin – This means either charging higher prices or getting products or labor at lower costs, or both. You don’t want to be the most expensive business in your category, but often customers associate higher price with higher quality. Experiment with pricing to see what works best.