3 Ways To Grow Your Business
Over 95% of people think of their business as a way of covering their bread and butter costs to survive. You know something that’s exactly what they end up doing just surviving, and then they wonder why their business is not growing. The good news is that there are more than a few ways to grow your business and today I am going to run through the 3 major ways do just that:
- Increase price
- Increase the number of customers
- Increase the frequency of purchase
As you can see all 3 ways will help you create additional revenue, just by a few minor changes I seen drastic changes to the bottom line of a business, businesses that have gone from just surviving to thriving just by applying all the factors by a simple 10% to all 3 ways.
Increase Price
Price increase has a bigger resistance from the business leaders point than it has from a customer’s point of view. Business leaders fear that they will lose customers, these businesses are the ones who think it is all about price being the cheapest in order to survive. Once again we see the work SURVIVE and that is exactly what they end up doing. You see a price be it high or low has two effects on customers, if it is too low the customer will think it has no real value so they will go elsewhere and pay a little more for a similar service or product when yours was as good or even better. On the other hand the customer who is only concerned about price and not values will end up buying your product or service. But the general rule is the bottom end of the market (the lower end of any price) this is where 80% of the customers are the difficult one’s who take more time and moan and expect more.
As long as you are able to demonstrate value for your product or service a mere 10% increase in price should not cost you to many customers who refuse to buy from you because the increase. But what you will get on the flip side of the coin from customers who now see your service or product at a perceived higher value will attract new customers for you who are willing and able to pay you.
You should focus on quality and not quantity, quality will allow you to increase prices as quantity will push your prices down. Being the cheapest is not good because someone else sooner or later will come along who will undercut you, then what do you do?
Increase The Number Of Customers
Every business owner knows that in order to increase the revenue they must increase the number of customers; this is no secret. The secret is how you increase the number of customers. Most companies in business over promise and then under deliver, this a sure way of killing your business. The smarter businesses focus on promising less and over delivering, this way customers will go and brag about the good service they get from you and attract more customers back to you. I purchased three shirts online via a new website and in my opinion I thought I was getting a good deal but when the shirts arrived I had also got three complimentary ties for being a new customer with my first order. Yet there was no mention of the free gift when I made the purchase. This is what we call the WOW factor by under promising and over delivering and yes I told my friends and relatives who also purchased from the same site.
Word of mouth is the most important form of advertisement because happy customers who spread your name and your message will get you more customers coming in than you ever thought possible. A happy customer will attract a few great customers. A happy customer with an incentive will attract everyone they know.
You should also think of ways in which you can advertise offline and online. You should already have a website and you should use it. Give the customers an incentive for coming in the first time and wow them with your service every time. While newspaper readership is going down, the Sunday papers are still widely read.
Gone are the days when we went out and sold products and service by knocking on doors, with today busy lives we all lead and the free access to information on the internet lets each customer research more about what they want or need before making a decision. Your goal is to engage with potential customers by educating them by writing blogs and via other media. Most businesses try and sell as soon as they get in contact with clients. All clients / customers are suspects, your job is to build trust and and move them from suspect to prospect then furthermore create credibility. By creating trust and credibility you have a greater chance of converting them from prospect to customer then once a customer you then need to convert them to a raving customers who talk about your products and services to their friend and bring you in more new leads and then convert in to customers. All you have to do is increase 10% more new customers along with 10% price increase and see the difference it make to your bottom line for profits.
Increase the Frequency Of Purchase
The frequency of purchase is as important as getting new customers. The best thing is that if you increase all 3 ways your business will grow like rocket fuel. Business leaders are great at getting customers coming in, but not so great at keeping them continuously coming back for more. There are a few things that you can do to attract the customers you already have. You can always try and up sell at the point of each sale. Just like when you drive in to Mc-Donald’s they ask you would you like large fries with that sire and large drink?
The trick is keep offering deals that will bring them back to you just that one more time than what they normally do. You can only do this by connecting with your customers and understanding their needs and wants. Do not just for the sake of selling sell them products or service they have no need, you must always be looking for ways to care for your customers in order for them to trust you and keep coming back for more.
When you have managed successful to increases all 3 of the above way, you will see the difference in your business by generating more profits for you and your employees.
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