Sales, profit, revenue—all are important defining factors that determine your business’ level of success.
When you boil it down, you are dependent on the sheer number of sales to drive revenue and profit margins. Higher the sales, the greater the ability to build your team of employees, purchase equipment, manufacture products, and deliver services.
Increasing your small business’ bottom line is no overnight feat, in fact, it could take months, even years, to see success. Using these tactics, you’ll finally be able to see that business boom you’ve been searching for.
Method #1: Increase or decrease product prices
If your market is particularly competitive, it could be your pricing model that has you feeling like one of the pack rather than the star of the show.
Say, for example, you’re in the pizzeria business. You’re lucky enough to have set up shop in a town where there are only a handful of other Mom and Pop pizza shops. Let’s say you all charge abound $8.00 for a small cheese pizza. Shifting your price down to $6.50 could drive sales through the roof for a simple reason—consumers love deals on quality products.
To some, undercutting prices may seem like a sleazy tactic, but if you ask us, it’s one of the smartest to use when you’re dealing with tight competition. Just don’t undercut yourself!
Method #2: Build your in-house team
Though it does cost more money out of pocket to hire new team members, sometimes all a business really needs is a breath of fresh air and influx of new ideas to get the wheels turning again. Whether you’re looking to upgrade your small business tax preparation services or revamp your social media marketing game, you’ll want qualified, experienced, and talented people at the helm of your business venture.
With new, experienced professionals offering their ideas to your business’ cause, you could see changes to your bottom line within months of new implementations. Choose your candidates well and you could be well on your way to a successful next quarter.
Method #3: Offer bundle deals
People are more likely to buy more in your store if you offer bundle deals. So for example, if you’re a small artisan and your top-selling products are your handmade scarves, offering a bundle deal that includes matching, handmade mittens would be an excellent idea.
The key is to sell products that naturally go together, or can be used for the same task at the same time. Be sure to put reasonable thought into your bundle deals before putting them into place. You could even ask loyal clients for their opinion on what bundle deals would be most attractive to them!
Method #4: Add complementary service to existing products
Everyone loves extras, and exciting add-ons attract new clientele who want one service but can get another for a great deal. For example, say you’re a car mechanic. You offer a great $29.99 oil change promotion and decide to tack on a free brake test. The brake test will allow customers to survey the health of their vehicle’s brakes, and potentially book you for additional service.
Customers want to feel like they can trust their service providers, and one of the best ways is to offer deals that deliver value.
Method #5: Participate in coupon programs
Daily deal websites like Groupon and LivingSocial are amazing ways to publicize your products and services on a large scale. With these sites, you can offer discounted items while gaining exposure to a vast online audience. Be sure to do your fair share of market research to determine what kind of sales and discounts will work best within your particular industry.
Coupon programs are great for:
- Local companies
- Companies with low-cost products
- Travel companies
- Service companies
- Entertainment venues
Coupon programs are another way to gain new clientele who have a high probability of return. If your service or product impress, they’ll be sure to keep your business bookmarked for the future.
Increasing your business’ bottom line doesn’t have to be a trial and error process, especially when you have the right tools to rejuvenate your next quarter. Tell us your favorite bottom line boosters in the comments below, we’d love to hear them!