If I walked into your business and spent an afternoon, I’m pretty sure I could find several small hidden profit centers, just waiting to be tapped. Let’s talk about 7 strategies to find hidden gold in your business.
Strategy #1
Let someone else do the mopping and filing
When you “save money” by doing $8 an hour work instead of letting someone else do it, you don’t save money and actually cost your business MORE. You are robbing yourself.
What should you be doing instead? Things like keeping your existing customers, finding new customers, working on your marketing, improving your products and services, creating new products and services, training your staff, business planning, and the like. Those are the things your $8/hour teen knows nothing about.
Strategy #2
Get MUCH closer to your current customers
You do not believe me? How many companies you buy from have struggled to see what else they can do to help make your family or business life even better after they sold you the first product or service. I guess “Not many”.
I want to know everything I can about your clients. Why? Because that information is the key to discovering what else your company can offer to those customers. They already trust you, so why not offer additional products and services to help them? Each additional product and service they can trust you with will strengthen your relationship with them.
Strategy #3
SYSTEMATIC collection and use of testimonials
When you see a sign or brochure that says “We’re the Best Mortgage Broker in Town,” do you believe it? Doesn’t everyone say that, or something like it? How do you know who to talk to?
Now consider this fabricated testimonial: “Joe helped us figure out how to refinance the house even though my husband was laid off. He helped us when everyone else told us it couldn’t be done. Now my husband is working again and we are doing great. Joe believed in us as a friend when no one else would and I’ll never forget him.” -Mary Smith, Columbia Falls Montana.
Everyone feels like they are taking a chance with their business the first time they walk in. A credible testimonial from existing clients, with their full name and the city where they live, is extremely powerful. An image of the customer smiling with you is even more powerful.
Strategy #4
Measure, measure, measure.
A friend of mine is the CFO of a global wholesaler of furniture and housewares. One of his favorite sayings is “What gets measured gets managed.” Boy, that’s a mouthful.
Do you know how much it costs your business to get a new customer?
Do you know how much it costs your business to get a sale?
Can you tell me how many dollars you get for every dollar you spend on each of your marketing campaigns, ads, etc.?
If you can’t answer these questions, how do you know which ads are helping you? How do you know which clients are profitable and which ones are leaving you dry?
Strategy #5
Industry standards are for people who like normal results.
This is what everyone else is doing, so you should be doing it too, right? Most likely… WRONG. Industry norms are often artificial barriers, rules, or benchmarks that were placed there by those at the top of the food chain in that industry. It’s not your job to adhere to industry norms, it’s your job to make your business the best it can be.
Look at Domino’s Pizza. 25 years ago, NO ONE brought you pizza to your house. I mean, who would pay for THAT, right? Certainly no one guaranteed that they would deliver hot pizza in 30 minutes or that it would be free. Take out and eat pizza was the “industry norm”. Domino’s Tom Monaghan didn’t pay attention to industry norms back then and neither should you today.
Strategy #6
Stop trying to beat Walmart at THEIR game
Everyone knows who has the lowest prices in town every day, right? walmart.
Let’s assume for a moment that you sell lawn mowers. Worse yet, it sells the same brand that Walmart sells, but it may sell different models. Or maybe not.
Do you really think you will EVER be able to compete ON PRICE with a company that buys loads of mowers while you buy them by the pallet? PLEASE.
If you really want to make money competing with Walmart ON ITS TERMS, buy Kmart stock. That’s what I thought. Ok I got it out of my system 🙂
Chances are you can’t beat Walmart, at least not on price. You CAN coexist and make a LOT of money doing it. In fact, you might consider putting your store next to them to take advantage of the traffic.
Strategy #7
What we have here is a lack of communication.
The famous line from the movie “Cool Hand Luke”, right? Well, chances are his business is experiencing this same failure: not communicating often enough with his customers. Yes, I know. You think this is common sense, but it will never work for you because your business is different.
I’ll tell you what. Let me start the same business as yours just down the street. Keep doing what you’re doing now. In the meantime, I will start sending your customers a monthly newsletter, weekly emails, birthday cards, anniversary cards, reminders about the benefits of their frequent purchases, recorded voice calls on special occasions, short personal notes including newspaper articles. recent ones that mention them or their children (etc), and so on. A year from now, we’ll see who they spend the most $ with. If you’re still around.
Copyright 2006 – Mark Riffey. All rights reserved throughout the world. Reprint Rights: You may reprint this article as long as you leave all links active, do not edit the article in any way, credit the author’s name where appropriate, and follow all EzineArticles Terms of Service for Publishers.