232 Boundary Road, Braeside, Victoria, Australia, 3195

Assisting Clients to Prosper
 

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 margins might make 50% on additional sales to existing customers (less labour to bag one large order than two smaller ones). Asking "What would you like to drink (fries) 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 advertising 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?
    A Restaurateur once sent a letter to several visiting basketball teams, inviting them to visit our restaurant, and giving the coach a free meal as an incentive. The cost? Two dollars. The payoff was two busloads of customers. At that rate, you could increase your business profits even if nine out of ten ideas fail. In our own case, a small gesture on a With Complements Slip ultimately resulted in the arrival of one of our largest and interesting clients.

  4. Have you tested prices?
    If a business that sold a product for a $1.05, which 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. There are ways to Test your price points.

  5. Can you measure your advertising results?
    How do you know that you're not spending more for a customer than they're worth? Coupons, customer surveys and other methods of measurement are a must. Even just ask them, how did they found you?

  6. How do you know your customers are satisfied?
    When you had your worst restaurant meal you ever ate, did it go down without a comment, but I'll bet you never returned to that restaurant. Maybe the owner should be talking to the customers.

  7. Can you enhance the perceived value of your product?
    Years ago, we know of someone who sold walking sticks for $10 at flea markets, and $20 at craft shows. Sometimes location alone can enhance the perceived value of a product. What else can you do? Have you thought about differential pricing?

  8. What are similar businesses doing?
    See what your successful competitors are doing. Can you do the same? On the other hand, what are your customer's complaints about your competition? There is double the value in this!

  9. What other products can you sell?
    There's a reason stores have sweets and magazines near the checkout. 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?

These were culled from a longer list. We call it "stolen business ideas," because we can't credit the original authors. We took them where we found them over the years, with gratitude.

Business

READ MORE

Taxation

READ MORE

Superannuation

READ MORE

Ross Wadeson Accountants Blog

View all blog posts

Comments from our clients

  • "Hi Ross, I just thought that I should tell you that Monty has been helping me with a problem I had with Gracott over the past few months. In this time, his help has been well above what would normally be considered normal for an accountant's role. I have been very grateful for his assistance. …… I thought I should pass this on to you personally."
    - Jill Miglietti, Bervic Engineering Co Pty Ltd
  • "Thanks for the business valuation I am very happy as was my Solicitor with this, the valuation was quite detailed and you went into great detail showing the different methods used in calculating the value also supplying figures to substantiate your calculations. Great work thanks."
    - Jon Everitt, Signarama Moorabbin
  • "It is refreshing to see that your understanding of property transactions and your proactive approach goes much further in depth compared to an average accountancy practice. My recommendation to our clients to seek your expert advice would be without hesitation and encouraged!"
    - Michael Libman, Director (Licensed Estate Agent) Property Choice Pty Ltd
  • "The Planning Session: The process was very good in assisting us to clarify our personal and business goals and objectives. In our case, with each of us running separate businesses, it was particularly helpful in highlighting the directions we were both heading, and where simplification could be applied to create more efficient management..."
    - Kevin Ezard Aquarian Developments (Aust) Pty Ltd - Marketing and Consulting
  • "Many thanks for your work this year. A friendly and efficient company. Our contact with you over the many years of our association has been a pleasure and we look forward to continuing this in the future."
    - Linda and Ray Eades - Carpentry Business and Super Fund
  • "Thank you very much for your help to me and Damian recently. The matter discussed has now been concluded. We feel very fortunate to have you not only as our account but also as our trusted friend."
    - Veronique Moloney – Long standing client

View all testimonials

Contact / Connect