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How do you increase business profits? Answer the following questions carefully, and you′ll have a good start.
1. Can you increase the average sale? A restaurant with 25% profit margins1 might make 50% on additional sales to existing customers (less labor2 to bag one large order than two smaller ones). Asking What would you like to drink with that? works, and it′s just a start.
2. What′s the least expensive way to get a customer? Before you spend another thousand dollars advertising3 to get new customers, could you get as much business by spending a few hours contacting previous or existing customers?
3. What low risk ideas can you try? I once sent a letter to several visiting basketball teams, inviting4 them to visit our restaurant, and giving the coach a free meal as an incentive5. The cost? Two dollars. The pay off was two busloads of customers. At that rate, you could increase your business profits even if nine out of ten ideas fail.
4. Have you tested prices? I knew a store that sold a product for a $1.05, that cost them $1.00. At a price of $1.20, it is doubtful that they′d lose half their sales, but if they did, they′d still make twice the profit. Some things even sell better at a higher price. Test.
5. Can you measure your advertising results? How do you know that you′re not spending more for a customer than they′re worth? Coupons6, customer surveys and other methods of measurement are a must.
6. How do you know your customers are satisfied? The worst restaurant meal we ever ate went down without a comment, but we never returned to that restaurant. Maybe the owner should be talking to the customers.
7. Can you enhance the percieved value of your product? Years ago, I sold walking sticks for $10 at flea7 markets, and $20 at craft shows. Sometimes location alone can enhance the percieved value of a product. What else can you do?
8. What are similar businesses doing? See what your successful competitors are doing. Can you do the same?
9. What other products can you sell? There′s a reason stores have candy and magazines near the checkout8. Extra sales are a great way to increase business profits.
10. Can you use your customers as salesmen? Word of mouth is a start, but what other ways can you get your customers to bring their friends to you?
1 margins | |
边( margin的名词复数 ); 利润; 页边空白; 差数 | |
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2 labor | |
n.劳动,努力,工作,劳工;分娩;vi.劳动,努力,苦干;vt.详细分析;麻烦 | |
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3 advertising | |
n.广告业;广告活动 a.广告的;广告业务的 | |
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4 inviting | |
adj.诱人的,引人注目的 | |
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5 incentive | |
n.刺激;动力;鼓励;诱因;动机 | |
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6 coupons | |
n.礼券( coupon的名词复数 );优惠券;订货单;参赛表 | |
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7 flea | |
n.跳蚤 | |
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8 checkout | |
n.(超市等)收银台,付款处 | |
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