You can transform your profits by making really small changes in just a few areas. There are 8 strategies in particular that work for any type of business. Here is a case study to demonstrate it. (I’ve rounded all figures to make it simple to follow).
The turnover was £500K, gross margin 60% and net margin 30%.
The average spend per customer visit or “cover” was £25.
Their break even point was 10,000 covers. They were selling 20,000 per year.
We discussed just 5 of the 8 strategies. The owner then estimated how much implementing each one would increase their sales. She was convinced we could achieve far greater increases than we went with but we decided to be extremely conservative in our estimates.
(The actual results we ended up with were significantly better than we estimated).
Strategy one was to devise a market dominating position so we stand out from our competitors. Estimated increase in sales 10%.
Strategy two was up-sell and cross sell. Conservative estimated increase 5%
Strategy three – Downsell. Estimated increase 5%.
Strategy four – Joint ventures – a new one each month. Estimated increase 10%.
Strategy five – Regular offers to get customers to visit more frequently. Estimated increase 10%.
The result was an increase of sales from £500K to £770,000.
Net profit increased from £150K to £312K which is a 108% increase.
The other three strategies we could have looked at are bundling, advertising / landing page and cost reduction.
So you can see that just implementing a few key strategies one at a time and making very small improvements will double your profits over the course of a year.
If you’d like to take part in my $£50K challenge I need case studies for a magazine article. The challenge is that I can find you at least that figure of extra profit in the course of a 45 minute online business turnaround consultation. Because I need case studies I won’t charge you to benefit from this offer.
To book your free turnaround screen-share meeting go to:-