How Many Ways Do You Know To Increase Sales Turnover $’s?
Have you ever wondered just how to get increased sales and more dollars flowing through your business?
Cash flow is the lifeblood of a business and without an increasing turnover many businesses struggle to grow.
Have you ever been there hoping the sales $’s come in just in time to pay the wages and rent or know someone who has?
It’s not a pretty place to be, uncomfortable and even frightening.
I know for many businesses there is a simple, although often feared, solution to increasing turnover and growing a better cash flow.
There are only four ways to increase turnover in a business.
What exactly is turnover?
Turnover is the amount of money generated by a business from its sale of goods and services.
The first way to increase turnover is to simply raise the price of your goods and services.
This can be a very challenging thought for many.
How do you feel about raising your prices?
Later you’ll see a tip that can make customers readily accept a higher price.
The amount of increase before your business starts to lose sales depends on your market and the price elasticity (that’s one of those nasty economics terms) of your product or service. Basically it means how much your customers will accept price increases before they stop buying.
If you have a high demand product with little competition or potential for customers to substitute it for another then your price rises can be quite high and certainly will lead to increasing sales $’s through your door.
On the other hand if there is a lot of competition and alternative products or services that could be substituted for your offerings then your capacity to raise prices and increase turnover will be limited and challenging.
Modelling Price Increases Impact on Turnover
Before you jump in and start making changes to your prices you should model the impact on your sales. We do this to be more comfortable turnover will increase (although nothing can be guaranteed) before testing and measuring.
This can be done using fairly simple spreadsheets and after gathering some market information (a bit of research) you’ll be able to work out the appropriate assumptions to use in your model.
You’ll need a marketing strategy too.
How will you present this to your customers as being fair and even better value to them?
You don’t want to increase sales revenue at the long term cost to your business and reputation.
Drivers for this Strategy
Often the reason or driver to do this is to improve your business profitability making life a little easier for you. Sometimes its driven by necessity to meet cash flow needs. You achieve your goal because each unit sold has a higher Gross Profit (or contribution margin) which helps pay off your overheads faster leaving more money in the kitty for you. Sound good to you. Doesn’t it?
The contribution margin is the profit on each sale after deducting all direct costs of the sale and it is this margin that is applied to covering all indirect costs or overheads.
(See my YouTube Video Contribution Margin and Break Even Analysis)
Another reason may be to reduce demand if your productive capacity is being challenged.
This usually slows unit sales, if the price rise is high enough, while maintaining profitability.
That’s it for this post and in the next articles on Increasing Turnover we’ll look at more challenging and sophisticated ways to increase turnover in a business.
If you’ve found this interesting please share it with your friends and associates who might also benefit.
Think about it. Is it better to share this piece and pieces like this than to discover later that someone you know could have used the information?
If you have ideas about increasing turnover, getting your sales dollars up, then add some comments too.
Oh just one final thing -
You might find it easier to raise your prices than you think by using some marketing triggers to give your products and service a premium value in the market and, by now, I hope you feel I can help you with that so why not Contact me for a chat.
Have you ever faced stonewall customers?
You know the ones that never make a decision and procrastinate using every excuse they can not to make a decision or take an action.
How do you cope with their stonewall tactics?
Some transactions are just not profitable enough to take the time and effort to overcome stalling tactics.
In other words – drop the customer and find someone who wants the product or service at the price and time you can afford.
For example if you’re selling a service that will generate a low cash flow and small profit – Gross $100 Net Profit $35 you really need to consider the time you or your business spends trying to get the sale. That $35 net profit will dissipate very quickly in wages lost through the time taken to manage the deal and win the sale.
If the profit on the sale was significant (for your business) or lifetime value of the customer was much higher then your additional investment could well be worthwhile.
Why do they employ stonewalling tactics?
- Perhaps they want to drive a hard deal and see this as a power play.
- Maybe they just don’t understand the value in the deal.
- Is it a lack of trust and rapport?
- It could be they just really don’t want the deal but don’t know how to say “NO”.
This is where you as a responsible and professional salesperson really have to evaluate their situation and take a walk in their shoes to understand what they are doing and why.
Sales is all about satisfying your customers needs and desires.
Needs are logically satisfied and desires are emotionally satisfied. People buy on emotion and justify with logic on the basis of need.
Let me illustrate this for you -
A man came into a hardware store for a quarter inch masonry drill bit.
What was he buying?
If you said “a quarter inch hole in some masonry” – Give yourself a Tick.
If you added “so he can feel satisfied or happy or relieved or … when he’s done the job” – Go to the top of the class.
He was buying a solution to his problem – he needed a quarter inch hole in some masonry and until he had the right equipment he was feeling some emotion like frustration that he was unable to complete the task.
He was probably also thinking ahead and about the feelings he would have when the job was completed.
He was driven by his emotions (yes you can even get emotional over a drill bit) – emotions triggered by his need.
Stonewall clients can be a challenge but if you look into their situation you have a better chance of determining whether or not you can add value to their world.
The smart salesperson would be asking what he was doing and how the drill bit would help him before diving into the technical attributes (if even at all).
Present the solution- “Hey I’ve got just what you want and it’ll have that hole in that brick before you know it”.
Want to better understand how your customers buy now and how to use and overcome stonewalling customers tactics then contact us here at Local Mobile Internet Marketing with your query and we’ll be in touch with you.
Selling With Stories
By Chris Stanton-Cook
Don’t leave money on the table by not understanding how to weave a great story around your products and services.
From time to time we all have a problem that we don’t fully understand or know how to solve. We need to find someone who can give us a solution to that problem.
People who can speak well and engagingly build relationships and trust and really don’t have to sell because customers choose to buy from them.
Think about the last time you had a problem.
You weren’t sure what you needed to solve that problem.
Remember that time and go back there and see what you saw, listen to the sounds and revisit those feelings you had while uncertain about what to do.
As you do this you’ll probably feel a little uneasy now as you did at the time.
All you want is for someone to take away that pain and pressure you’re experiencing.
Probably at sometime you’ve been to a beach or a forest, remember, and that’s a great way to clear those unpleasant thoughts you have just recalled.
Later your problem was solved and revisit the time when the solution was delivered and again see what you saw, hear what you heard and feel all those nice feelings of having ridden yourself of that problem.
Feels pretty good now, doesn’t it.
Let’s look at what most likely happened between recognition of the problem and delivery of the solution.
You’ll have been told stories about the way the solution will help you as it has others before you.
Often these stories are designed to agitate you even further before you are given examples of people who have been down this path before you and how they were once again happy and satisfied because they problem they faced had been removed or significantly lessened.
Engagement in the Story
You’ll have become engaged in the tale. The language used will have driven your emotions and the more that happens the deeper you become emotionally involved.
This is the mark of a good story teller. They are able to move your feelings from concern (or worse) to a sense of satisfaction and well-being.
You’ll have purchased your solution with little thought about the actual product you were buying because you knew inside you that you’d feel good. You’ll have purchased the solution based on emotion and not rationally. Psychologists tell us that you’ll rationalise the purchase later and that’s really easy to do if you have been well served because your problem will have been solved.
Weave an emotional tale
To be able to weave a tale and engage your audience is a skill that makes the difference between engaging with your customers or, in the worst case, boring them out the door of your business.
This is a similar flow to the AIDA marketing formula (Attention-Interest-Desire-Action) but I see it more as IADA ( Identification – Agitation – Diffuse and Desire – Action) and now there is much more use of carefully chosen language patterns and physiology in the mix, (if you are interested in this subject learn the basics of NLP short for Neuro Linguistic Programming).
This post has been inspired by what I have learned from Pete Godfrey, otherwise known as the Wizard of Words. Pete is a master storyteller and I highly recommend you look him up and discover how to weave words and get some great business building tips from Pete’s Blog. I know that smart people read my posts so I’d like to think that you like me will invest in his monthly Newsletter, last time I looked it was $347 a year (less than $1 a day) and I’m already champing at the bit for the March edition. (I am not an affiliate and get nothing but the satisfaction of knowing I have given readers a great tip and introduced those who don’t know him to someone worth listening to).
These skills can be used face to face, in emails, on your website, in social media and anywhere you get the chance to promote your business.
There is a key that will unlock your local market and lock in your local customers
When you use some or all of the 5 tools of marketing you can access this key for your business.
Local Marketing Your Local Business
Now you can discover the many options available to you to market your local business.
In my short book “Local Market Money Spinners” , now available on Amazon, you will find you have so many ways to market your business that you’ll never run out of options.
In summary the book covers how you define your market in terms of your customers and yourself, five different modes of marketing and finally a brief guide on planning your marketing program.
I have written the book in an informal way to ensure that it is not technical and full of jargon and is something that local business owners can put to use.
Here is an excerpt from the introduction -
The lifeblood of any business is a steady flow of customers delivering a strong cash flow.
There are only four ways that any business can increase its turnover. These are
- increase price
- increase the number of customers
- increase the value of the sale
- increase the frequency of sales
In this guide it is my intention to offer a variety of ways in which small businesses can
become valuable members of their local community and sought-after suppliers in the
The Local Business Marketing Content
The book starts with a definition and discussion about local markets and how you should look at a number of factors that will impact on your business.
Self evaluation is vital when in business and here you will learn about yourself and how you will relate to your market. Better to know your strengths and weaknesses before you open yourself to your customers and their demands and needs and wants.
It is then time to take a look at why you set up or are going to set up your business and how to discover or find your niche. It’s becoming evident that specialisation is the way of the future in this economy and if you can find a profitable niche you’ll be untouchable by the big players.
Building a customer base is where you will gain some insights and your first view of the five main areas available to local business operators to build a strong relationship with the community and become a trusted and sought after supplier.
The main areas covered are
- The Internet and Mobile
To wrap up I look briefly at two marketing models and then a short guide to planning a marketing program.
You Must Have A Marketing Plan
A plan is essential so that you can gain maximum feedback from your program. The plan tells you what you want to achieve and how you’ll do it. You can then set measures and tracking points to test if everything is going to plan and what you may need to change or tweak.
This could be the best $4.99 (USD) you ever spent for your local business.
If you read and like the book then watch this site for dates of upcoming webinars supporting the content of the book. These are due to start in July and will be presented by ProfiTraining.info, the training site for my business development work.
So why not Click the ad and get yourself a copy, and just imagine what would happen if your got one great idea from the book now.
No Kindle? - No Problem!
If you don’t have a Kindle you can download the free app and read it on your PC, laptop, tablet or smartphone (just search Amazon for “Free Reading Apps” and select the one appropriate for your device.
5 Great Reasons to plan your website before building
- Understand why you need the website and its core needs.
- Know what you goals are so your site supports these.
- Enables you to plan progression from concept to completion.
- Monitoring of progress as the content is delivered.
- SEO can be built in as you go.
- An extra one – greater efficiency and effectiveness.
2012 SEO tactics to keep up with Google
I received an email this morning from the Traffic Travis team about 2012 SEO tactics.
Here is a paragraph from that email -
“One of our SEO expert staff members, Jason, has written a detailed blog post on the topic of how to boost your search engine visibility in 2012.”
or copy and paste to your browser -
SEO is always a contentious area with many theories about how it is best done.
My experience has been that relevance of content and organic backlinks from a wide variety of topic related sites and having a site which links internal pages well works best.
Now social media are being brought into the equation and this will require a significant change in approach for many – especially the power it seems Google Plus and YouTube have to affect rankings.
I’m concentrating on Local business sites and using them in conjunction with mobile marketing have a powerful resource to offer. In 2012 SEO will continue to be a major aspect of the services offered.
Delivery of great page rankings in your local market remains imminently achievable.
Take up you position now because in a year or two it will be so much harder to rank with increasing competition moving into the web every day.
Discover our local marketing services
In 2012 SEO needs to be taken very seriously and that’s what local mobile internet marketing services is all about
Local Mobile Internet -
There is great power in combining three modes of marketing.
There is a great amount of leverage to be gained by having a marketing plan that integrates the three main streams available to smaller businesses and once set up require very little time to maintain.
Local Mobile Internet Marketing is a fantastic and vibrant combination. Businesses can change their websites, messages and marketing messages in a flash (well almost).
This speed and flexibility is why services like the Yellow Pages books are suffering.
If you can get a great page 1 Google position form organic searches, that’s without paying for it, it makes the Yellow Pages seem very very expensive.
Lets have a look at the three – Local Mobile Internet
Local marketing methods are not dead, just not as effective as they once were.
There will still be a need for newspaper ads, letterbox drops, community activities and sponsorships.
These help build your community and local presence.
Mobile marketing is the “new kid on the block” as far as smaller businesses go.
We now have access to tools that, until recently, were avalaible only to businesses with big budgets.
Technology has automated these opportunities and the means of collecting the information to build a mobile list are right in front of most business owners and they don’t even know it.
A counter form is a great place to start and give a small gift to those who fill out the mobile and email details. Make sure they sign it too.
Facebook is another way to collect this information and enables you to get good quality information.
Internet Marketing has now become an old methodology and has not been the easiest for small businesses to access (costs) use (technical skills).
Web sites and site maintenance have become much less technical and much more friendly to the wallet in the last few years.
This means all businesses should be able to take more opportunities on the internet and build a strong presence there.
Changes in the way the search engines operate mean that local businesses now have an advantage when searches are made.
Google likes to show you local businesses first.
Now lets look at the power of harnessing a Smartphone into your marketing armory.
You just have to have a mobile friendly (mobile optimized) website to take advantage of this now common technology.
More than 20% of all searches on the internet are made with mobile devices.
If you don’t cater to them you will miss 1/5 of your customers enquiries.
By 2014 it is expected to rise to over 50%.
I recently reviewed an internet marketing course written in the first half of 2010 which recommended students ignored mobile devices.
How things have changed.
If you ignore this segment of the market you losses or “money left on the table” will be more than 1/5 of your custom.
Why do I say that?
People calling on a mobile, more often than not, are in a hurry and need their problem solved quickly.
They are often described as having their credit card out and ready to buy.
Google now looks at sites to see if there is a mobile optimized site when ranking sites.
To rank on page 1 of Google as a local business is not impossible at the moment. In a couple of years it will be unless you already have a strong web presence and Google likes old sites, (old in age not old in content).
The combination of these three engines has put an awesome amount of power in the hands of smaller businesses and not to take advantage of it is just not a sensible play in this current economic time.
Harness the power of three – Local Mobile Internet Marketing
For further information please contact Chris now to discover what he can do for your business with local mobile internet marketing.
Please visit my facebook page for local mobile internet marketing and click the like button there.
Admin – comments in Green and indented
The On-line local marketing wave is building and it’s time to catch it
A neatly written article explaining the need for small businesses to use the internet to their advantage in local marketing or risk being left behind.
By Allan Joseph
Is Your Small Business Using Online Local Marketing?
As a small business owner, if you do not take advantage of the Internet, then you are missing a huge opportunity to promoting your products and services. Using online local Internet marketing tactics can transform your small business marketing into BIG business marketing.
Admin – Local marketing used in conjunction with your site, mobile tactics is a powerful combination. You can’t just use one of them and achieve great results. The local mobile internet team of players produces a huge effect compared to any of the three being used alone.
Nearly 50% of businesses have taken that first essential step to getting online: building a web site. That’s great but, unfortunately, just having that small piece of real estate on the web isn’t enough. It’s a start, so let’s build on that by reviewing some basic things to do with the web site first. The appearance and the content of your web site should be simple and valuable. Whoever visits your site should find it attractive and should be able to clearly understand your company’s benefits. Try having enough information on the site to answer the most frequent questions that your prospective customer might have. Even more, have information on the site that explains what they SHOULD know, but don’t know to ask about. Again, just putting up a site on the Internet isn’t going to be enough to bring more business, but make sure it is done right.
Admin – Your site is real estate and your should always develop it with the idea of selling it a t some date into the future. Some people make a living from establishing websites and building a following then selling. the profits can be astounding.
The key to using your web site to drive more traffic to your business, with phone calls, online purchases, or in-store visits, is capture the attention of people searching for your goods and services online. The number of people using search engines, such as Google, to find local businesses like yours is skyrocketing. Recent studies show that many more people are searching the web for local products and services than picking up the “handy” yellow page book. Google and its rivals have figured that out and they are investing heavily to designing their search engines to cater to that audience. Therefore, you need to do THREE THINGS right now to benefit from that trend.
Admin: Have a look at Local Marketing and Google statistics on web searches and note that Mobile Devices are expected to dominate all internet searches by 2015.
1) First, construct your web site to conform with what the search engines want to show their users. Specifically, find out what the online searchers are typing into the search box and write your web site’s content to accommodate. That is often referred to in the Internet marketing community as on-page search engine optimization (or SEO).
2) Second, promote your web site in as many places as possible (online and offline). “As many places as possible” includes, but is not limited to, these activities: finding web pages online where a link to your web site can be placed; adding your business information to online local directories; adding your business information to social media sites; creating content in the form of articles, videos, images, reports, etc. and posting it on a variety of online content sharing web sites; and others! With a little creativity, you will find that there are more opportunities to reference your business and link back to your web site than you’ll ever be able to do.
3) Third, manage your reputation online. If you do nothing else, you should be monitoring what people online are saying about you, your business, your competitors, your suppliers, and even your customers (if you’re B2B). Many tools exist to monitor these conversations.
Admin: Local marketing can be a very powerful process when it is based on the trio of local combined with mobile and the internet. This combination can lead to local market domination and great acceptance of the business by the community.
If you want to attract more customers, then take advantage of the Internet by making it easy for people to find your business when they are looking for it. Nowadays, people are using the Internet as their primary source for researching local businesses. If you understand that and implement these three steps, you will be in a great position to attract that audience. If not, your competitors will.
If you are a small business owner that understands the value of the Internet as described in this article, then you’re ready to take action.
Click this link to find out more about affordable local online marketing.
Article Source: http://EzineArticles.com/?expert=Allan_Joseph
Online internet local marketing has opportunities never before available to the medium and small business sector.
Take the opportunity to discover more now. Ask Chris about an online presence for your business here to have a strong local marketing campaign and dominate your market.
Kenya shows how to do it with mobile apps
Isn’t it sad how the top 10 most advanced nations are so far behind a developing nation in the commercial use of mobile apps.
How many ways can this smartphone technology be used that haven’t yet been tapped.
The speed of transfer of data has never been faster.
The geographical coverage is almost worldwide (subject to some Government interference and isolation).
Mobile is the way of the future and it is here now.
Developing mobile apps has never been easier
Take note of the movement and get onboard the mobile train or you may find the boat has gone when you reach the dock to cash in with your mobile apps or marketing strategy.