How to Make a Profit in Your Business: 5 Margin-Boosting Tips
by Mashum Mollah Business Development 21 December 2018
If your ROI proves pathetic, you need to take a hard look at how you’re running your business. When it comes to how to make a profit, a few simple change-ups can boost your profits in big ways. Interested in learning more?
From small price increases to rethinking your marketing strategy, you can turn lukewarm profits into a show-stopping payoff. But you have to know where to start.
Read on for five tips to ramp up your margins.
1. Bring Down Your Costs:
This step proves you don’t need radical changes to start seeing healthier profit margins.
If you can cut your direct costs by as little as three to five percent, you’ll see significant savings over time.
But how do you do this? Start by approaching your suppliers. Ask each one to give you a better deal.
You won’t lose anything by asking. Then, just wait for their response at a better price. Once they know you mean business, the offers will start.
Every dollar you shave off costs means a dollar you save. Besides, a little negotiating never hurt anyone.
2. Inch Up Your Prices:
You and your customers share a relationship. One that you don’t want to violate by jacking up prices. But if you inch up those prices by as little as three to five percent (are you sensing the pattern, yet?), you’ll end up with more profits in your pocket.
By raising your profit per sale incrementally, you’ll maintain the rate at which you sell products. But you’ll increase profit margins simultaneously. Small increases lead to big bucks at the end of the year without turning away customers.
3. Rethink Your Marketing Message:
Why do customers shop with you? What sets your company apart from the competition? If you struggle to succinctly answer these questions, then it’s time to revisit your marketing message.
At the heart of this message sits your unique selling proposition (USP). It represents the “what” and “why” of your business. And you should be able to sum these up in ten words or less–total.
Once you have your USP, use it in all of your marketing materials moving forward. That way, you present one consistent message across the board. When you differentiate yourself from the competition, you drive more customers to you.
4. Speak More Effectively to Your Customers:
Now that you have your USP, make a list of the benefits and deeper benefits that you provide to your customers. Not sure where to start?
Why not conduct a customer survey to find out why customers choose you. Understanding your customer demographics will also help you grasp the deeper benefits of your products and services.
For example, if you own a car wash that’s well-lit, clean, and offers helpful evening attendants, you may attract more young mothers and single women looking for a safe place to take care of their vehicles.
Whatever your selling points, you need to emphasize them. That’s what sets the marketing campaigns of businesses that make money apart from their competitors.
5. Encourage Repeat Customers:
Did you know that repeat customers spend more money than new ones? Like 67 percent more? If you haven’t spent much time focusing on securing repeat customers, then now’s the time to get with the program.
This one step could trigger a massive rise in your profits. So, quit procrastinating and start finding ways to show customer appreciation.
Among our favorites? Start a customer loyalty program that incentivizes frequent trips to your business. This could include a customer loyalty discount or coupons distributed to customers along with their receipts at the time of purchase.
How to Make Money in Business:
Interested in more ways to increase your profits, scale back your costs, and ramp up your marketing success? Why not consider a diploma of business to give you the entrepreneurial edge?
It’s never too late to put your future first. What’s more, business education means a win-win for you and your business.
How to Make a Profit:
When it comes to how to make a profit, we’ve got you covered at Real Wealth Business.
We help business owners, writers, entrepreneurs, and people just like you stay on top
of the latest developments coming from the business universe.
The tips above will put you on the fast-track to making profit increases. They’ll also help you better understand your market so that you can stay competitive and growth-oriented.
In the business world, if you’re not growing, you’re dying. Don’t get left in the dust. Contact us today with your questions and comments.