Seven Ways to Increase Revenues

To grow any Business, you must continually seek ways to turbo charge it's engine. You must develop strategies that will drive sales to ever-higher levels while ensuring that your growth in revenues translates into higher cash flow and profits. Essentially there are seven ways to increase revenues. Mastering any one of the seven will produce significant results. Success in all seven will lead to dramatic growth.


Make More Sales

The first and perhaps most obvious way to increase revenues is simply to make more sales. Of course, one of the best ways to accomplish this objective is by expanding your customer base. If you own a restaurant, how can you attract more patrons? If your business supplies parts to OEM's, what strategy will allow you to sell to a greater number of manufacturers? If you run a print shop, what steps can you take to bring more customers in the door? What new strategies will allow you to attract more customers?



Sell More Often to Existing Customers

In addition to expanding your customer base, you can also make more sales by selling more often to the same customer. Customer acquisition costs can be enormous. Once you have developed a customer, look for ways to increase the number of times you sell to him in any given period. In addition to increasing your sales revenues, such sales will also be more profitable.



Sell Something Else

In addition to increasing the number of transactions per customer, you might also be able to sell the customer additional products. Increasing revenues from your existing customer base in this way is yet another example of capitalizing on your original customer acquisition cost. Ask yourself, "What else would someone who is purchasing my product or service be interested in buying?" The women buying a new pair of shoes might want to complete her wardrobe with a matching handbag. Does the opportunity exist for you to sell additional products to your existing customers?

Make More Profitable Sales

To this point, we have covered four ways to increase gross sales revenues. But what is of paramount importance to any business is cash flow and profits. In addition to achieving this end by increasing gross sales revenues, you can reach the same goal by improving sales margins-that is, by increasing net sales. Examine the profitability of each of your customers. Also, determine the profitability of each product--you will find that some are more profitable than others.



Reduce Your Selling Costs

We have already mentioned that an important consideration in gauging the financial health and the future prospects for any business is the cost of the customer acquisition. Do you know yours? Examine your sales processes. Do you sell directly or through independent distributors? If you pay commissions, are your commission rates optimal—that is, are they high enough to attract good salespeople and low enough to be practical? Do you support your sales force or your independent marketing collaterals, such as brochures, catalogs, and the like? Continually seek ways to increase your revenues, both gross and net. The prime determinant of your direction will be your ability to grow revenues and profits.



Action Exercise

What improvements could you make in your products to make them more attractive and salable?

Comments

Post a Comment

Popular posts from this blog

5-Step Plan to Reverse Diabetes

Image
Step 1: Remove These Foods to Reverse Diabetes Naturally Certain foods negatively affect your blood sugar levels, cause inflammation and trigger immune responses. To reverse diabetes naturally, the first step is to remove these foods from your diet: Refined sugar: Refined sugar rapidly spikes blood glucose, and soda, fruit juice and other sugary beverages are the worst culprits. These forms of sugar enter the bloodstream rapidly and can cause extreme elevations in blood glucose. (7) Even though natural sweeteners like raw honey and maple syrup are better options, they can still affect blood sugar levels, so only use these foods on occasion. Your best option is to switch to stevia, a natural sweetener that won’t have as much of an impact. Grains: Grains, especially gluten-containing grains like wheat, contain large amounts of carbohydrates that are broken down into sugar within only a few minutes of consumption. Gluten can cause intestinal inflammation, which affects hormones like
Read more

Does apple cider vinegar help people with diabetes?

Image
Apple cider vinegar may have various health benefits, such as supporting weight loss and managing blood sugar. These benefits could help people with or at risk of diabetes. However, scientific research has not yet confirmed them. Scientists have yet to back up the majority of the health claims around apple cider vinegar with significant clinical research. However, some evidence has emerged to suggest that apple cider vinegar may have particular benefits for the management of diabetes. Diabetes is a chronic condition that leads to an inability to manage blood sugar levels properly. According to the World Health Organization (WHO), in 1980, around 108 million people had diabetes. Its prevalence has significantly increased over the past few decades to an estimated 422 million in 2014. This article looks at the research that links apple cider vinegar and diabetes, as well as ways to take apple cider vinegar effectively. According to scientists, apple cider vinegar has the potential to
Read more

The Dangers of Ego-Driven Spending: A Call for Reality Check

Image
In a world where status and outward appearances reign supreme, it's all too easy to fall into the trap of ego-driven spending. We live in a society where success is often measured by the size of our possessions and the prestige of our lifestyle. As a result, many of us find ourselves chasing after the latest trends and splurging on luxury items in a bid to keep up with the Joneses. But what if I told you that some of the wealthiest individuals in the world eschew ostentatious displays of wealth in favor of a more modest lifestyle? Take, for example, Warren Buffett, one of the most successful investors of all time. Despite his immense wealth, Buffett is known for his frugal habits, driving the same modest car and living in the same unassuming house for decades. Similarly, tech titan Mark Zuckerberg, founder of Facebook, is often seen wearing a simple gray t-shirt and jeans, despite being worth billions of dollars. And then there's Ingvar Kamprad, the founder of IKEA, who fam
Read more