Business is quite simple. If you want to increase your profit, you either have to increase your revenues or decrease your costs. But think about it – is it because Apple has lower costs than other manufacturers that they are one of the most prominent and profitable companies in consumer electronics? Probably not.
For a long time companies have focused on lowering their costs, most likely because it is easier than increasing their revenue – and you are in full control of your costs. That is OK… you should always try to keep your costs down. But the bad news is that there is a limit to how much you can cut your costs.
The other way to increase your profit is to charge more for your products and services. But just raising your prices might scare customers away causing your sales volumes to decrease.
Solving the poor profitability-dilemma rests with increasing revenues. The good news is that you can work with a wide variety of aspects. Here are a few things to consider:
- Create a more attractive offering that meets your customers’ true needs
- Start Driving your market (as opposed to being driven by your customers or competitors)
- Apply a smart pricing & product strategy; both your sales volumes and overall price level will increase
- Communicate the real value, what it means to the customer
- Implement a good Sales plan
- Is your Sales staffing correct?
- Review your Sales team’s targets and incentives
- Build and communicate your brand
Some actions will take time to implement. In the meantime, try to implement quick wins to get real results immediately. The Rebbel Mountain-platform provides you with not just the strategic frameworks and an actionable step-by-step plan to enable you to create your solution, but also tips and ideas regarding quick wins. And which pitfalls to avoid!