Written by: TFVstaff • January 2, 2020• Business

3 Effective Ways to Make Your Business More Profitable

It’s no secret that finances play a large role in the ultimate success or failure of a business. Just one bad financial year can completely derail a business. For some businesses, their financial management may be bad, leading to confusion amongst finances, which can be solved with accountants like those from Melbourne accounting firms. For others, this can mean a lack of profitability. To ensure the long-term success of your business, it’s important to continuously search for new ways to make it more profitable. Whether you own a medical practice or a clothing store, effective ways to make your business more profitable will help improve the financial state of your company.

Increase your prices each year

While it may seem obvious, increasing your prices can help make your business more profitable. Each year your business will likely experience increased expenses. Reflecting these expense increases in the cost of the products or services you offer is important to sustain the profitability of your business. Generally, you should increase your fees by around three percent. The key is to increase your fees without losing your patients or customers.

Improve customer loyalty

Using someone like Home Service Direct (if you’re in the home service industry) to acquire new customers each year is important for a business’s growth, improving customer loyalty is essential for long-term success. Acquiring new customers is typically more expensive than retaining existing customers due to the marketing efforts and sales labor necessary to convert a potential customer into a buyer. In addition, new customers usually spend less than repeat customers that already trust your products or services. As such, improving customer loyalty should take priority over acquiring new customers when trying to increase profits.

Upsell customers

During each transaction your business makes, you should always look for ways to upsell your customers. To do so, provide customers with the option to purchase more expensive items and services or add items to their purchase while they are checking out. While you should always offer customers relevant upsells, make sure that the suggestion doesn’t come off as pushy or off-putting. Another way of trying to promote more of your products is by considering getting an on-hold message to play when customers call the company. Instead of playing music, businesses could consider playing some messages to promote other products that customers may be interested in. In order to record one of these messages, you’ll need to get a good phone system. When choosing a phone, you should really consider finding one of the best sip trunking providers as well, this will help the business to direct calls easily. Hopefully, that will help more customers to stay on the line, ensuring that the business secures more leads and sales. Additionally, by increasing the dollar value of each purchase your customer makes, you can greatly increase your business’s profits.

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