How to Unlock 5,000 – 100,000 Pounds of Untapped Profits From Your Business in 30 Days

May 17, 2012 by  Filed under: Sales 

A recent Business Coaching Program Survey revealed the % of companies NOT systematically deploying these proven profit strategies. These were all businesses that had spent between £1500-£15,000 on how to build businesses more successfully.

% NOT implemented;
• Up-selling at point of purchase- 91%
• Actively Reselling Customers- 93%
• Deploying a Formal customer Relationship program- 96%
• Asking for referrals – 89%
• Building Strategic Alliances- 95%
• Optimising Best Practices- 95%

Profit Accelerator Strategy #1 – “Offer an Up Sell & Cross Sell at Point of Purchase”

Up-Sell is when the customer or client purchases more or a greater quantity of what they are ordering and Cross-Sell is where you suggest the customer buy an additional item or service that they did not intend to order that may complement the initial purchase.

There are literally hundreds if not thousands of examples that you come across each and every day.

Have you ever made a purchase on Amazon? They have an amazing strategy “Customers who purchased X also purchased Y & Z” or “Get these 3 items together for just £49.00” both are classic examples of cross selling.

Or when you may have been grocery shopping and you see a great 3 for 2 offer or 2 for £10 and it seems like an amazing deal to good to be missed.

The Up-Sell and Cross-Sell will only work if what is being offered is well thought out and is based on better meeting your buyers’ needs. It involves having an understanding of your clients buying decisions, choosing the right time and selecting the proper item that will give them extra value. It often helps to explain the value they will derive from the extra purchase they make.

For Example:

McDonalds do this by asking “do you want a drink with that?” This saves the buyer the embarrassment of having forgotten something and having to queue up again, it’s serving them because you are thinking through their experience of enjoying what they just bought and thinking of a way that you can enhance the experience.

Another example is when they ask ‘would you like to go large on that’ for what is often just an extra few pounds the buyer can receive more.

It is statistically proven that 30% of people when asked say “YES” to these questions so if you employed this simple strategy in your business you could instantly earn as much as 10-30% of your profits from this time tested marketing tactic.

A real life example of this was when I worked for an International Recruitment Company on a Fire Clean Up Project, this project had a tight deadline for the client and as I knew this I was able to put together an offer of clean up crews that worked in double shifts 24 hours a day. An example of a win-win situation for both the client and for us; the job would now be completed within the deadline and we had instantly doubled our profits and added an additional fee for night shift workers.

Action Step

To implement this into your own business, firstly think about what it that is will enhance the buyers experience when it comes to them using your products or services. Now with this in mind design an offer that gives your customer greater value if they purchase it as an addition to their current purchase rather than individually at another time.

The next thing to do is to test this process for yourself, Offer 20 of your customers an additional item at the point of purchase this could be an up sell or cross sell and see how many say Yes.

Now calculate the impact to your bottom line of this strategy in your organisation.

Example:
Profit Accelerator Strategy #1 Calculator – “Up Sell & Cross Sell at Point of Purchase”

(A) Average Up/Cross Sell Value £200
(B) No. Of Up/Cross Sells Per Month 5
(C) No. Of Up/Cross Sells Per Year 60 (B x 12)
(D) Profit Margin % 50%
(E) Added Profit Per Year £6,000 (A x C x D)
5 Year Profit Stream £30,000

Now make a promise to yourself to take this information a step further in your business. Remember knowledge is only power when it is implemented.

Profit Accelerator Strategy # 2 – Increase Profits by Increasing The Frequency Of Purchase

Ask yourself the following questions:

How many times in a year do my customers purchase from me?’
What would happen if you could double this figure?
How much do you currently invest in looking after your existing customers?

It wouldn’t be surprising if you said ‘not very much at all’ You are not alone there are thousands of businesses who spend a huge amounts of money on Advertising, Public Relations, Marketing Web and Brochure design with their sole focus being on winning new business.

A well known study in Fortune Magazine revealed that it is 6 times more expensive to acquire a new customer than it is to sell to an existing one.

There are thousands of unclaimed profits that are not being collected by businesses who do not actively and systematically put in place a program to encourage them to purchase more frequently or to ensure that they continue to purchase on a regular basis.

Let me give you another real life examples from my own life, this is where the business has this strategy working perfectly.

Example:

I purchase a health supplement. They have 2 amazing strategies, the first is that they ship me 4 months supply in one go and then charge me monthly via credit card. Secondly after 4 months they automatically send me the next 4 months shipment and continue to change me on a monthly basis. If I had to reorder each month I probably would not get round to it and they would lose this continued marketing free profit. It creates a win-win; I get my product without any hassle and they have me as a continued customer.

Another easy example of this could be a Car wash – How often would you go to get your car washed if you were given an extra incentive or a reminder to stick to the same one. Or how about getting your hair cut, if you were contacted to schedule your hair appointment would you be more likely to book in it and turn up.

What sort of opportunities do you have to do more business with your clients?

We are not saying that you need to constantly ask but instead encouraging you to keep in constant contact with your customers.

I personally used to visit my customers every Friday with a bag of doughnuts for them and their team. Do you think I got to know these clients really well, of course I did and they remained loyal and gave me plenty of inside information by spending this extra time with them?

I could have never have received this benefit had I ignored them and focused just on new business.

I also sent out other incentives such as tickets to the rugby (If I knew who their favourite team were).

The most important thing to remember is to value your existing clients. They really have the power to determine the outcome of your business growth. Your communication needs to be self serving for the customer, useful and of value.

A client that I worked with used a strategy which involved implementing a customer survey conducted over the phone with just 3 questions and generated an extra £180,000 plus per year in extra revenue.

Action Step:

Contact 20 of your customers and see if by asking them questions you can stimulate them to purchase sooner rather that later. Now calculate what would happen if you had a systematic approach for this strategy.

Example
Profit Accelerator Strategy #2 Calculator – “Increasing The Frequency Of Purchase”

(A) Average Sales Value £250
(B) No. Of Additional Sales Per Mth 4
(C) No. Of Additional Sales Per Year 48 (B x 12)
(D) Profit Margin % 50% (£11,520)
(E) Added Profit Per Year £5,760 (A x C x D)
5 Year Profit Stream £28,800

Wow! We have covered some highly potent profit strategies but we are keeping the exercises and numbers basic here.

In our Coaching and Mentoring Program we delve deep within your business and industry to determine the best strategies that will work for you.
Sometimes the simplest strategies are the most successful and yield the best results and by now you should clearly be able to see how you can easily generate that extra £5,000 from your business and that this is merely the tip of the iceberg when it comes to the untapped profit potential of your business.

To Receive a Profit Accelerator Blueprint to Unlock £5,000- £100,000 of untapped profits from your business in 30 days ( Valued £47) Yours Free visit info@lorrainefernandes.com

Learn how I generated £750,000 within 4 months (600%increased sales)

Article Source:
http://EzineArticles.com/?expert=Lorraine_Claire_Fernandes

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