Michael Newman’s latest ‘e-Wealth Daily’ article is titled “Ways to Boost Your Profits Even if You Don’t Increase Sales”. [‘Increasing Sales’ Article]


Michael Newman’s latest ‘e-Wealth Daily’ article:

Ways to Boost Your Profits Even if You Don’t Increase Sales

When it comes to running a successful business, sales are key. As the old saying goes, “Without customers, you haven’t got a business.” However, sales are only doing their job if they are providing you with a healthy profit at the end of the month. After all, you didn’t get into business to scrape by; you want to make a decent living.

The truth is that many small business owners and entrepreneurs can experience a memory lapse when that cash register starts ringing. They start to enjoy the money coming in, but that
enjoyment can come at a high price when they forget to factor in their operating costs.

In order to boost sales, business owners offer things like low prices and discounts, which can end up drastically reducing the profits seen at the end of the month; and, while sales are
increasing, so is debt. The key to your business success and longevity is to boost your profits, not sales. Here are a few ideas that can help you accomplish this feat:

— You don’t have to drop your prices: In the early stages of a business, owners often think the best way to entice customers is to blow them out of the water with bottom-basement pricing.
The fact is that this isn’t a great way to accomplish your goals. If the only appeal to your customers is that you offer a low price, what are you going to do when the next business comes
along with even lower prices? You should look at other ways to entice customers, such as experience, quality and value, while charging standard or even higher prices for your services.

— Know what makes the most money: Different products and services have different potential to make profit. Knowing what your high margin offerings are, and focusing your efforts to
push them can help greatly to ensure a profitable business. For instance, if Brand A is a household name with a higher price, but a lower profit margin, then push Brand B. If Brand B is
lesser known with a lower price, it’s still the smarter sale if it gives you a better chance to maximize profits. To take advantage of this, offer a wide variety of product/services and
know as much as you can about them, in order to push them to their full potential.

— Be smart about your discounts: When offering a discount to boost sales, pay close attention to how it will impact your ability to make profit. For instance, instead of offering a
discount on a product, throw in an extra at a low cost. This way, you’ll end up losing less from your bottom line. Here’s an example: offering a 20% discount on a $500 item would be
costly to you. In this case, you’re losing $100 per sale. Instead, offer to throw in a lower margin item at a reduced price. Or, depending on your line of work, perhaps throw in some free
labor.

When you get your business going, try not to get addicted to sound of sales. A closing cash register can be an easy distraction from your greater business goal. By focusing on
creating profit, your business and paycheck can grow much faster.

e-Wealth Daily

About e-Wealth Daily

The e-Wealth Daily Bulletin brings you daily tips, advice and breaking news related to home businesses, small businesses and internet marketing. Our team of experts gives you the information you need to take your business pursuits to the most profitable level. Founded by Adrian Newman in 2003, the e-Wealth Daily Bulletin and www.ewealthdaily.com are a division of Lombardi Publishing with online newsletters reaching over 100,000 subscribers each month.

* IMNewsWatch would like to thank e-Wealth Daily for granting permission to reprint this article.

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