How to Make More Money

November 20th, 2012

Let’s face it virtually all business owners are in business to make more money, and if you make more money you should also be making more profit, and that helps everyone.

Here are 12 tips to inspire you..

1. Review your pricing. You should be doing this regularly – once a year is not often enough. The price review must be upwards. You need to have really really good reasons why you don’t put prices up or worse still reduce them. There are times when reducing is good but don’t blanket cut prices across the board.

2. Consider giving guarantee on your product or service. The impact should be low cost to you but high perceived value.

3. Offer customers multiple price points: basic price, better price and best price. Give them options that they can choose from rather than a one size fits all.

4. Up-sell. Make sure you include ‘up-sells’ in your sales process. Don’t forget to start selling the next product upgrade when you finish the sales for the first product. Everyone in your company must always be selling.

5. Give your customers payment options. Don’t make it difficult for customers to pay you – take the barriers down and make it easy for customers to pay you.

6. Sell to the rich. There are over 500,000 millionaires in the UK, make sure you are selling to them.

7. Collect a debt a day. Remember that you haven’t made the sale until the money is in the bank.  Time spent chasing money is an extra cost to your business.

8. Only give credit if the customer is credit worthy. Selling to people who have poor credit histories is fraught with danger. Even if they are friends – have your business head on when you make the credit decision. Take advice and make use of pro-forma invoices.

9. Encourage early payments. This saves you time & money – chasing payments is expensive. And you get the cash back quicker so you can make it work even harder for you. Don’t offer early payment discounts and then allow the customer time to pay – you might as well just reduce your prices. Consider cash backs, discounts off the next order over ‘x’ value, early settlement discount or up front payment discounts.

10. Be really good at what you do. Get customer reviews and testimonials and then use them in your marketing. Word of mouth recommendations are just so cost effective and they shorten the sales process too. The more recommendations you get the less you have to spend on marketing.

11. Solve your customers problems with your product or service – sell the benefits!

12. Always, always be selling – it’s the most important thing you do everyday. The more you sell the more money you make.

 

coachSME88

Shirley Mansfield is a highly experienced business coach & mentor. With over 25 years’ experience, she founded CoachSME in 2011 to work with business owners to maximise growth, and she is still trying to reduce the 18 handicap! Keep up to date by following me on Twitter.