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Cash Flow tip – 5 ways to increase sales in business
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Published on Friday, 22 March 2024 12:22
Here are five strategies to boost business sales.
1. Understanding your expenses is crucial when considering offering discounts.
While discounts can attract new customers, selling at a loss will not contribute to positive cash flow. It's important to thoroughly assess the costs and impact of any discount offered, including understanding the overall cost basis, ideal pricing, offer costs, and profit margins to determine if the discount will result in breaking even or operating at a loss.
2. Instead of discounting, adding value through bundling products or services is recommended.
By creating bundles, businesses can provide both perceived and tangible value to their offerings at minimal cost. For example, car manufacturers offering maintenance agreements with new car purchases not only address customer concerns about potential maintenance costs but also add value by reducing perceived risk.
3. Developing higher-priced back-end products or services can offset the potential lack of profitability from initial customer acquisition efforts.
For instance, offering free initial hours of service with subsequent hours at a higher price, or providing discounted services with the anticipation of future higher-priced consultations, can help generate profits.
4. Focusing on encouraging repeat business is essential for volume-driven businesses like retail.
The goal is to cultivate loyalty and increase customer frequency, as it often takes multiple transactions before a customer becomes profitable. Implementing loyalty programs, VIP offers, and other frequent-shopper programs can systematize repeat business, while leveraging incentives like "free" to attract customers.
5. Pre-selling products or services can accelerate sales by allowing customers to plan for the future or get an early start on shopping.
Additionally, offering to take back old products at a pre-arranged price can incentivize customers to make purchases sooner.
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