I’ve long said that business success is NOT EASY, but it CAN BE and SHOULD BE simple. In fact, business coaches, gurus and consultants hoping to sell you solutions are — in my humble opinion — the primary reason business has been largely publicized and rumored to be hard, expensive, and complicated. But let’s not get off topic. If you’d like to (dramatically) simplify profit, keep reading this post.
Here are 3 ridiculously simple ways to increase your own business profits:
1) Raise Your Prices.
Stay with me. I’ve been in business for myself a LONG TIME, have run different businesses and consulted within countless industries. Here’s what I can say with absolute confidence: The price your market is willing to pay is more elastic than you think. I know you may think this isn’t true for you. But, stay with me so I can BEG you to test this theory with absolutely NO RISK to your current income. Create a “premium offer.” Something at a much higher price point than what you’re currently offering. Load it with value. And then offer it to your existing client / prospect base. A certain portion of buyers will ALWAYS buy a premium offer. Allow this little price experiment to give you the confidence to re-package and re-price your current offers.
After all, you can’t afford to be the CHEAPEST of your competitors. And there’s ZERO value to being “second cheapest.” So you may as well up those prices for more profit. TEST higher prices and then email me to tell me I was right. Lol
2) Create More Referrals
Referrals are something that most people simply hope for, but far too few businesses orchestrate, plan for and build systems around. You can read more about the problem with how most business owners go after referrals here, but for now, just know that referrals can and should be the backbone of your income / profit increasing strategy. Referrals come to your without a “break even” cost of commercials, direct mail, etc. Referrals — typically — arrive already pre-sold on your work and their need for it. So, generating more business from referrals is a smart bet.
Not sure what to do to bring in more referrals? Start here:
- Who are your TOP REFERRAL SOURCES? Be sure you know who they are. You’ll want to weave them into the fabric of your firm, practice or business. Consider private dinners, surprise gifts, or special VIP treatment.
- How do you REWARD referrals? Be creative. Do NOT stay stuck in the mode of “I’ll give you a $5 gift card for each referral.” That’s lazy. People refer because they want to make a difference in the lives of those they are referring. And because they believe in you and your work. Keep this in mind.
3) Bring Existing Clients / Patients Back for More.
According to Richelle Shaw, author of Million Dollar Equation and one of the NICEST women you’ll ever want to meet, your business can make more money in these three ways: you can get more clients, have your clients pay more money per transaction or have them come back more frequently. This last “ridiculously simple” strategy prompts you to do the latter. Most businesses leave it up to YOU to decide if / when to come back and visit them. No. No. No. Script their return date.
One of my clients owns a massage therapy studio. Profits went way up when therapists began writing down — almost like a prescription — a return date for the client. Don’t leave it up to THEM to decide when they may want a massage, tell them when to return and why. Give them a reason to remember and return to you. TELL them what to do next.
I hope this helps, y’all. If you have a minute, go public – and leave a comment with the action YOU’RE willing to take to make more profit. Have a question, leave it in the comments below. =) I promise to answer and respond to each comment / question.
Michelle Pippin — Main Street America’s business strategist — is the undisputed authority on creating clients for your small business. Ruthlessly committed to creating unreasonable results for experts and small business owners all over the country, she founded www.womenwhowow.com, one of the fastest growing business development organizations for women, and has been featured on national and local media outlets giving real world, right now solutions for business owners creating their own success.
Michelle is often described by her clients as relentless, grass-roots, passionate, profit-driven… and sometimes, even worse! But, if your business is pregnant with potential, and you are ready to (FINALLY!) give birth to consistent profit that fully leverages your passion and expertise, you’ve got to speak to Michelle. visit her at www.bmichellepippin.com.
Just Between Friends is actively seeking franchisees across the United States and Canada. To find out more about joining the JBF team, click here.
image © Stepan Popov