Are you making your business taste bitter? Need to make it taste sweeter?
What I mean by sweetness, is getting the right return on your investment.
It could be that you are over servicing your customers by not charging enough; maybe because you feel uncomfortable doing it. Have you ever given extra products, with no payback required?
Are you offering a discount? Do you know how much damage a wrongly priced discount can do? If you give a 10% discount on a product, for which you usually charge £10; that’s a whole pound off. Sounds ok, until you realise the cost to you of the product. In terms of purchasing the stock, plus overheads; this could mean that the item actually costs £9.50. A loss on the deal of 50p. Don’t laugh, I’ve seen many do it.
There are many ways to keep your customers sweet… And still have a nice tasty business.
It doesn’t necessarily have to be monetary. It could be a favour, or a deal.
One way is to operate an introduction swap. Recommend someone to their company and they will do the same in return back to you – reciprocal referrals.
Another way could be to offer a bundle deal. This allows for an up sell; get more cash from the transaction. The perceived value is higher to the customer, and if you can, at least, break even on a very low cost item in the deal, you increase positive cash flow too.
One client gives away a cleaning product with his manufactured item. The cleaning product costs pence, but is perceived as a nice give away. This helps the deals go though and creates raving fans who advertise for them. The minor cost is recorded as advertising. A small outlay, given the potential return.
Another client gives away samples of their products – mini versions that don’t cost much to make. They have a huge impact on the sales process and have been seen on buyers desks when the client visits them. A nice reminder of the products and services offered. To some in their industry these samples have become a must have…. Some buyers have shared pics with their colleagues on social media. More free advertising.
When it comes to providing services, you could offer an additional service that doesn’t cost you much, if anything, extra at the time you are working with your clients. For example, a service on a car could include a brief maintenance report that would highlight what may need looking at in the future. Useful information for the customer (can start saving now) and develops a long term relationship.
What other ways can you think of for sweetening your business? What could you do to make your business taste sweeter? Please let me know your thoughts.