How To Consistently Generate 25% More Gross Profit From Your Small Business!
(Especially When Don’t Initially Have Any More Money To Put Into It!)
Okay, hopefully by now, you’re at least semi familiar with the (much used) marketing terms “upsell” and or “add on sale”, correct?
If not, when it comes to one of retails masters of the use of “upselling” in their multi billion dollar a year operation.
That would be none other than McDonald’s!You know, whatever you order, even a first day on the job, semi trained 16 year old, has been trained to ask, “Would you like fries with that?”
And since a staggering 20- 45% of their daily-world wide- customer base, (not only) initially answers yes to that question, but a certain percentage will actually order a super size order of fries and perhaps an additional item or two!
Extremely savvy small business owners of every kind, should definitely take a page out of McDonald’s proven playbook.Don’t you agree?
However, there is another incredibly profitable variation of the “up/add on sale” marketing concept, a ton of extremely savvy, Mom & Pop small business owners consistently use as well.
See if it looks at all familiar.(And it too, doesn’t require virtually any increase in your current overhead cost, in order to be extremely profitable to you!)
So How Do Some Extremely Savvy Small Business Owners Just Like You Consistently Generate At Least 25% More Gross Profit From Their Cash Challenged Businesses?
(Especially When They Initially Have Virtually No Additional Money To Invest In It!)
This first “market tested”, real world example occurs everyday, at least six days a week, in literally millions, of (single location), local Mom & Pop sub, pizza and other retail food shops.
You (and or), a friend or co-worker, (just to) temporarily get out of the office for a bit, head over to nearest (Mom & Pop) owned sub sandwich shop. After all, you gotta try and eat healthy whenever and wherever you can, right? 😎
And because their (daily) lunch time specials, (typically) runs from 11:00 am – 2 pm, M – Saturday.
When you order a sub and small drink, you automatically get upgraded from a small (diet) drink, (if you can actually stomach the taste of it! 😎 ), to a medium size diet drink.
What Profit Seeking Small Business Owners And Or Service Providers Couldn’t Benefit From A Little More Bank Account Filling Marketing Leverage!
For the exact same cost.And of course, the same holds true for the locally owned, Mom & Pop pizza shops and or Chinese style restaurants. Does that little proven, pricing strategy sound at all familiar?(Yes indeed!)
They just build their “upsell” right into their “lunch time special” price, where as the McDonald’s of the world, merely attempt to add it on, right after your initial sale.
Either “battlefield tested” approach,once it’s properly tweaked and strategically adjusted, will consistently add to your bottom line, for virtually, little or very little increase in your general overhead.
And you can definitely see that, right?
Even Though Some Extremely Savvy Entrepreneurs May Initially Be Temporarily Cash Strapped! (They Almost Never Run Out Creative Money Making Ideas!)
First of all, if you’re not currently using (either) proven form of the “upsell/ add on sale” marketing concept, in your retail operation.
Entrepreneur, you’re easily leaving an additional, 10-40% of your- much deserved- initial front or back end gross profits, on the table, for your more aggressive major competitors to strategically gobble up!
Now, (for just a moment), stop and think about at least three all too common occurrences,(some of which happen on a daily bases!)
And (how) an ever so slight marketing tweak or two, could very easily lead to an additional 25-40% more gross (front) or passive back end profits, for the extremely savvy entrepreneurs, that are pro-active enough to consistently utilize it.
Is Your Semi resourced Challenged Small Business Or Service Leaving A Certain Percentage Of Your Long Term Gross Profits On The Table!
1.) First all too common occurrence:Think about what happens, (at least) six days a week, somewhere, wherever there are local cable TV providers.
Has the local cable TV provider company ever come to your (home), and or place of business, (to either) do a standard repair, and or installation of some kind?
And for the most part, they are (consistently on time)- are they not? And extremely professional and courteous, correct?
They expertly perform their duties, and have you (or someone) within your organization sign off on the necessary paper work, and their off, correct?
Who Says Your Resourced Challenged Small Business And Or Service Can’t Have Multiple Untapped Profit Centers!
And just like that, (once again) they easily left, (and or) are consistently leaving an additional 10-40% of their gross back end profits on the table!Huh?
Think about if for just a second!Those repair techs, should be trained to offer every (new) and or existing customer they visit, (six days a week), one of their best market tested, (extremely time sensitive), discounted prices, on some additional premium services and or channels etc!
Because statistically speaking, anywhere from 10-40% of them will readily take advantage!Especially if they throw in some additional free bonus goodies valued X!
Some Of Your Best Marketing Strategies Come By Way Of Consistently Providing Outstanding Customer Service!(Don’t You Agree?)
2.) Second all too common occurrence: Now think about “how” often, a local (Mom & Pop) Chinese restaurant owners delivery person, merely delivers an order, smiles as they accept payment and leaves!Say what?
And practically, never ever offers a paying customer, (especially) a loyal repeat paying customer, some type of market tested “bounce back offer” discount coupon, or a card they get to hole punch, their next five, (or X) number of orders.
And with each subsequent order, they save 20% off, then 40% off, then 60% off etc, until their fifth order up to X amount of dollars is free!
Is Your Small Business And Or Service Getting Your Fair Share Of Bank account Filling Repeat Purchases!
That simple marketing gesture will definitely lock your best long term repeat customers in!Or offer them a card that offers them a free large soda of their choice, on their next five or ten deliveries!
In other words, do something, as opposed to merely deliver the order and accepting payment from a paying customer and leaving!Especially if it’s an extremely loyal repeat paying customer! 😎
Because there is a ton of-potential- additional business, just sitting there waiting to be claimed, by you and or one of your major competitors!(Don’t you agree?)
Savvy Small Business Owners Don’t Have To Think Small Do They?
3.) Third all too common occurrence: Here’s the next potential, long term money maker, staring far too many, cash strapped small business owners and or service providers in the face!
You just completed your latest visit to, (either) your hair dresser and or local barber. And after they’ve completed their last minute touch ups.
You pay for services rendered and go on your merry way, until your next visit, right? No way! That barber, (and or) hair/nail salon owner should immediately begin to (offer) -test- various incentives, for pre-paying for additional services.
Like maybe, charging an annual $7 -$15 dollars up front, for a VIP laminated discount coupon card, that entitles the card holder to save anywhere from 25-50% off an additional shave, with each hair cut for the men.
So What Type Of Long Term Money Making Incentives Can Your Small Business And Or Service Initiate ASAP!
And one free shave per year, and (simply) call it their annual free birthday shave bonus! 😎 And maybe discount the one annual haircut per year as well!
Just to create some serious, positive word of mouth and mouse buzz!And to create some serious long term clientele!
And just hole punch the card, so they know when their customer uses their free, ( and or extremely discounted) service for the year.
And of course, the card’s annual renewal date will be hand written on the front or back of the card. And likewise for the ladies.The point is, every day, paying customers enter these salons, pay their money and leave, do they not?
Successful Entrepreneurs Monetize Their Given Situations Do They Not?
And just like McDonald’s, these extremely savvy small business owners, have the exact same opportunity, to generate at least 25% more gross , front or back end revenue!Without necessarily increasing their overhead!Don’t you agree?
And finally, consider this; let’s say (either) that hair/nail salon owner, and or the local barber, has about 3,500 regular customers they see each year.Divided by a 52 week year, that roughly works out to about 67 patrons, per five day work week, or 13 customers per day!
(3,500 divided by 52 = 67 customers per week/ 5 days equals 13 customer per twelve hour work day.)
And let’s say 40% of them, or 1,400 paying customers decide to accept your “upsell” offer, and pay just $7 dollars a year, for the annually renewable laminated card.
Who Says Your Small Business And Or Service Has To Remain Traditional!
That means your cash strapped small business, just grossed an additional $9,800 dollars in purely passive back end income !(1,400 x $7 dollars = $9,800 dollars in gross profits!) Can you live with that? Now as is customary during this part of our show.
Please share your extremely valuable comments (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!
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