Profit or the Bottom Line, is ultimately the best financial
measure of your business’s success. It is the thing that we
are all seeking and the thing that we are always trying to
increase.
After all, every thing else that we do in our business,
whether it is marketing, sales, production or team building,
they are all intended to increase profits in some way. Of
course, there are other great reasons to build excellence
into your business, but Profit is the final measure that counts.
So, how do we get those profits up?
Well, there are a myriad of things that we can do. In every
area of our business lies some opportunity to improve our
profits. But the easiest and fastest way to bring up our profit
is by Raising Prices! By increasing our prices by a modest 5-
10%, we can impact our profit margin by significantly more
than that percentage.
Look at the table below. If we start with a 20% profit margin
and either discount or increase our price by 10%, we affect
our profit margin by a massive 50%! Discounting can be
devastating to a business, but increasing your prices, even
by a little, can do wonders for it! Which way strategy do you
choose; discounting or increasing your prices?
So, why are businesses so reluctant to raise prices? The
answer is FEAR.
We are afraid that if we raise our prices, our clients will go
elsewhere. Well, that fear is highly overrated. Price is a
factor in people’s buying decision but it ranks far lower than
we think. Most people will not even notice an increase in
price. Of course some may leave but they will be a relative
few. In analysis, you can actually afford to lose some
business when you raise your prices and still be ahead of
the game.
As an example, if your profit margin is 25% and you raise
your prices by 10% - you could actually lose 29% of your
business before your profits would suffer. Now, there’s no
way that almost 30% of your customers will leave if you raise
your prices by 10%. So you are pretty much guaranteed to
be ahead.
Click on the following link for a full analysis of the effect of
increasing your prices and the amount of business you can
afford to lose before your profits suffer. You will be surprised!
www.actionbusinessdevelopment.com/priceinc.pdf
In our newsletters over the past few months, we have talked
about differentiating your business and providing your
customers with a powerful Unique Selling Proposition. If this
is in place, I guarantee you clients are not buying on just
price. Your customers come to you because of your unique
products, or your terrific service or the buying experience
you provide or whatever it is you do best. But not just
because of the price!
I tell all of my clients to raise their prices, very early on in our
work together. Almost all of them do so and not one of them
has ever come back to say that they suffered any negative
effect. In fact, some of have said that this piece of advice
was worth the whole investment of the coaching program all
on its own.
So, the easiest thing to do about increasing your profits is to
raise your prices. The reason most people don’t do it is
because of an unfounded fear that their business will suffer.
How much will you raise your prices and when?
===============================================
Jim Gragtmans and Sandy Kemp are Action International
Business Coaches helping business owners grow their
business & do more with less effort.
Why are some businesses able to stand out from the crowd
and sell lots of product, very profitably? Because they have
a Unique Selling Proposition (USP).
Click here to learn more
www.actionbusinessdevelopment.com/products.html
================================================
**Attn: eZine editors and Site Owners**
Feel free to post this article in it’s entirety in your ezine or on
your site as long as you leave all links in place and include
our resource box as listed above.
If you need additional articles, check out our Article Archive
for fresh new content you can use on your website for FREE!
www.actionbusinessdevelopment.com/Tools.html
If you do use our articles, please let us know so that we can
have a look. Thanks
Jim & Sandy
mailto:jimgragtmans@action-international.com
mailto:sandykemp@action-international.com
measure of your business’s success. It is the thing that we
are all seeking and the thing that we are always trying to
increase.
After all, every thing else that we do in our business,
whether it is marketing, sales, production or team building,
they are all intended to increase profits in some way. Of
course, there are other great reasons to build excellence
into your business, but Profit is the final measure that counts.
So, how do we get those profits up?
Well, there are a myriad of things that we can do. In every
area of our business lies some opportunity to improve our
profits. But the easiest and fastest way to bring up our profit
is by Raising Prices! By increasing our prices by a modest 5-
10%, we can impact our profit margin by significantly more
than that percentage.
Look at the table below. If we start with a 20% profit margin
and either discount or increase our price by 10%, we affect
our profit margin by a massive 50%! Discounting can be
devastating to a business, but increasing your prices, even
by a little, can do wonders for it! Which way strategy do you
choose; discounting or increasing your prices?
So, why are businesses so reluctant to raise prices? The
answer is FEAR.
We are afraid that if we raise our prices, our clients will go
elsewhere. Well, that fear is highly overrated. Price is a
factor in people’s buying decision but it ranks far lower than
we think. Most people will not even notice an increase in
price. Of course some may leave but they will be a relative
few. In analysis, you can actually afford to lose some
business when you raise your prices and still be ahead of
the game.
As an example, if your profit margin is 25% and you raise
your prices by 10% - you could actually lose 29% of your
business before your profits would suffer. Now, there’s no
way that almost 30% of your customers will leave if you raise
your prices by 10%. So you are pretty much guaranteed to
be ahead.
Click on the following link for a full analysis of the effect of
increasing your prices and the amount of business you can
afford to lose before your profits suffer. You will be surprised!
www.actionbusinessdevelopment.com/priceinc.pdf
In our newsletters over the past few months, we have talked
about differentiating your business and providing your
customers with a powerful Unique Selling Proposition. If this
is in place, I guarantee you clients are not buying on just
price. Your customers come to you because of your unique
products, or your terrific service or the buying experience
you provide or whatever it is you do best. But not just
because of the price!
I tell all of my clients to raise their prices, very early on in our
work together. Almost all of them do so and not one of them
has ever come back to say that they suffered any negative
effect. In fact, some of have said that this piece of advice
was worth the whole investment of the coaching program all
on its own.
So, the easiest thing to do about increasing your profits is to
raise your prices. The reason most people don’t do it is
because of an unfounded fear that their business will suffer.
How much will you raise your prices and when?
===============================================
Jim Gragtmans and Sandy Kemp are Action International
Business Coaches helping business owners grow their
business & do more with less effort.
Why are some businesses able to stand out from the crowd
and sell lots of product, very profitably? Because they have
a Unique Selling Proposition (USP).
Click here to learn more
www.actionbusinessdevelopment.com/products.html
================================================
**Attn: eZine editors and Site Owners**
Feel free to post this article in it’s entirety in your ezine or on
your site as long as you leave all links in place and include
our resource box as listed above.
If you need additional articles, check out our Article Archive
for fresh new content you can use on your website for FREE!
www.actionbusinessdevelopment.com/Tools.html
If you do use our articles, please let us know so that we can
have a look. Thanks
Jim & Sandy
mailto:jimgragtmans@action-international.com
mailto:sandykemp@action-international.com
The Simplest and Easiest Way to Increase your Profits
| Feel free to use this article |
**Attn: eZine editors
and Site Owners**
Feel free to post this
article in it's entirety in
your ezine or on your
site as long as you
leave all links in place
and include our
resource box as listed.
If you do use our
articles, please let us
know so that we can
have a look.
Thanks
Jim & Sandy
and Site Owners**
Feel free to post this
article in it's entirety in
your ezine or on your
site as long as you
leave all links in place
and include our
resource box as listed.
If you do use our
articles, please let us
know so that we can
have a look.
Thanks
Jim & Sandy
