Keeping costs lean in any business is essential, but this shouldn’t be the main focus when it comes to increasing profits. There are a many ways your business can boost profits without resorting to the usual, cost cutting exercises:
Investing in your staff with training and better working conditions can help you to achieve better results. It can also improve staff retention.
Offering relatively small rewards for the most productive employees or best sales team can be effective. But it’s not all about incentives. If your business goes through a bleak period, keeping staff in the loop can build trust.
Encourage customers to consider your better, and of course, more profitable offerings. For example, if you have an e-commerce site, you could include links from your offerings that have thin margins to your more profitable alternatives.
Look after all your existing customers, but note that some will be worth more to your business than others. By finding out who are your most valuable customers, you can concentrate on nurturing them.
Satisfied customers can become a persuasive sales tool. Testimonials can help reassure prospects and warm them to going ahead with a purchase. Consider a scheme that rewards existing customers for providing you with referrals.
You may think your materials and promotions are fine, but they could be even more effective with a few tweaks or fresh thinking. There’s no need to risk everything to new marketing: run small, low-cost tests before committing your budgets.
If your business involves buying or selling overseas, the value of the pound against the currency you carry out your international transactions will be crucial. To help get a competitive rate, investigate using a foreign exchange company that can help manage the ups and downs of the exchange rate.
Can you hold the costs of your products or service, but charge more? As long as sales don’t suffer, your bottom line should benefit. But, try this route with caution, especially if your market is price sensitive.
Is having a large amount of stock tying up money that could be working harder elsewhere? Software can help you to optimise stock levels and manage the warehouse space needed to store it, reduce wastage and increase productivity. This is especially worth considering if you’re a wholesaler or a retail distributor/supplier.