Revenue and profit increases require focus and clever investments. Keep doing what you’re doing and you’ll get what you’ve been getting—the same revenue and the same profits.
Let’s look at the 5 top investments your company needs to make in order to increase high-profit revenue.
- Offer an appealing mix of products and services. This requires knowing what your best buyers and enthusiastic fans consider appealing. Don’t know? Find out before you create new offerings. Ask them directly, via a call with the simple and direct question “What would love to buy from us that we are not currently offering? Don’t worry about price or capability, just share your ideas.” Then take these ideas to your most creative people and create new offerings.
- Offer high value and avoid discounts of any kind. High value comprises quality as well as tangible intangibles such as convenience and extraordinary service for that specific offering. Discounts communicate far more than a lower price; they say to the buyers, “we believe our offerings are really only worth this much.” You will never recover from discounts.
- Customize whenever possible and then some! Best buyers and Enthusiastic Fans want offerings tailored to their specific preferences and needs. It’s often as simple as a special service or access, or knowing that no other buyer has the same product or service. Offer customization for higher-profit offerings only.
- Do what your competition is NOT doing. The only reason to analyze the competition is in order to be sure you do what they don’t do. Position your company as beyond comparison, better than the industry standards, unique and special. Market your one-of-a-kind position like crazy. You want to be Rolls Royce in a world of BMWs and Mercedes.
- Provide value that increases the buyer’s status, self-esteem, reputation, and sense of uniqueness. Quality is a tangible value, one that can be touched, seen and measured objectively. Your prices cover tangible value with perhaps a bit of profit included. The tangible intangibles such as status, self-esteem, reputation and access to highly coveted people and events, boost your revenue and your profits much more. When I work with clients on understanding the price-to-value ratio, these tangible intangibles are what we build.
How much revenue and profit are you aiming for this month and this year? Think about what investments will help you get there and beyond.