Three Proven Ways To Increase Profits Even During A Nagging Recession!
Entrepreneur, just depending on how long you’ve actually been in business and hopefully seeking to earn a profit.
Have you had the chance to experience the affects of a local nagging recession of any kind?
If so, you definitely know first hand, that it’s not fun, right?
It’s literally a constant struggle to increase profits, is it not? Absolutely.
But here’s the thing, the smart marketers that make the necessary (small, yet oh so strategic) adjustments, ultimately they will do okay, and not only maintain their profitability but in some cases (not in record breaking numbers mind you), actually increase their overall long term profitability.
Still in all, a semi prolonged, dragged out local recession, can actually be quite a challenge to not only maintain your current gross profit margins, but actually outperform your projected sales and revenue goals.
But in order for that to happen, you’ve got to first make a concerted effort not to be a victim of any down turn in your business cycle.
Which is definitely easier said than done. And that’s the true reason for this particular post. Let’s quickly explore three really simple ways for you (or your major competitors) to increase profits, especially if there’s a nagging recession going on and your money is extremely tight.
Who Else Wants To Discover Three Proven Ways To Increase Profits Even During A Nagging Recession!
You’ve heard it said that “whatever you reward (bribe) you get more of,” correct? Well, that strategical line of thinking will definitely work in your favor when you apply it to bribing your best customers, clients and or employee/associates etc!
Meaning- whenever you can ethically reward/bribe your best employees and or associates for (either) going above and beyond the call of duty for your customers and clients, and or the company in general. Do it! Because you’ll only get more of it!
Which brings us to profit increasing strategy # one.
1.) Profit increasing strategy # one: Entrepreneur, it’s far less expensive (in the long run), while simultaneously being far more profitable as well, to institute some type of weekly, monthly or quarterly rewarding process, where you acknowledge the top one-three performers that demonstrate above and beyond, or “go the extra mile” type of take no prisoners customer service!
If you create an “outstanding customer service of the week” award! (Or something similar.)And really make the rewards (bribes) worth it for the top one to three recipients, to really go all out!
In other words, they know the 1st place recipient gets $100 dollars in cash and 2nd place gets $50 dollars and 3rd place gets $25 dollars in cash. Guess what? Your entire staff has a tendency to really get galvanized!
And to really take this type of battlefield tested marketing strategy to the next level. Also double the reward for any recipient that receives the same reward twice. Meaning- if somebody receives 1st place more than once!
Then they automatically receive double the scheduled reward! So that $100 dollar 1st prize, automatically becomes $200 dollars!Say what? 😀
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And the next times, it’s $300 dollars! And the same rewards system applies to any level that your employees and o assocites win more than once!
2.) Profit increasing strategy # two: If it makes sense, during any prolonged recession, it may make perfect sense to approach your best (long term) advertising vendors, like your local radio, TV or local newspaper vendors and (at least) seriously inquire about them running your ads on a profit share joint venture (JV) type of arrangement!
Meaning – instead of you constantly spending your extremely limited cash up front on some type of traditional advertisement. Instead, offer to pay them a percentage of your front end gross profits. Because remember, you’ll conserve your cash initially, plus still net 100% of the long term repeat back end sales!
(Hey, the worse they can say is no! Or it may very well open the door to some type of mutually agreeable profit share arrangement, that never ever would have taken place, were it not for you initially proposing some type of cash preserving profit sharing arrangement.
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3.) Profit increasing strategy # three: And finally…. your third strategy simply involves you networking with your various vendors. When and wherever it makes sense. For ex; suppose you run a really quaint (small) Mom & Pop local bookstore. And you’ve got another local vendor that sells upscale gourmet type of exotic coffees.
You arrange for the vendor to come to your business, once per week (preferably) on your traditionally slowest day (and or) traditionally slowest season, and offer your steadily growing customer base a free cup of large coffee,lemonade, cocoa or tea to the first 100 (or x number) of customers that come to your store.
(Or the first X number of customers, who bring a friend, potential first time customer with them, whose 18 and over.)
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Hopefully, you’ve got an active social media presence. And you can tweet and post the scheduled times on your Facebook fan page etc. And likewise, the vendor can hopefully do that as well.
Meaning-they can alert their already existing customers to come to your bookstore, (and) if the vendor) has mobile marketing capabilities, they can text their customers and FB fans etc; a VIP new customer only VIP time sensitive discount coupon from your store! 😀
The main point being, hopefully, you can see how these three incredibly simple (non expensive) marketing ploys, actually help you increase profits, even during a nagging local recession! Don’t you agree?
Please list at least two simple spin off concepts (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!
As always, if you got any value out of this post, please Digg or tweet this. Thanks!
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I also like your ideas Mark.
I was running three businesses and trying to recover from the devastating effect of the recession of the last few years on my principal business. Things started changing pretty quickly once I hired a coach who did some major myth busting that completely changed my focus for generating revenue and then helped me create a plan for how to implement the ideas that resulted from it. After a short while, the fog lifted and I saw clear path ahead.
Rachel Lavern recently posted…Make a Leap
Wow Rachel!
Being actively involved in three separate businesses at the very same time! Talk about
commitment!LOL!
How in the world did you ever find time for anything else? A few good things tend to
happen during any type of prolonged local recession.
A.) Business owners and or entrepreneurs in general, start actively looking on and offline
for professional such as myself! Thank goodness!
B.) And typically, they are far more receptive and flexible, with regards to our non conventional
think outside the box type of proven solutions!
Thanks so much more continued support and for sharing your real world insights!
I definitely appreciate both!
Mark, you are resourceful. That is what makes a person, a true Entrepreneur. That spirit is inside each of us, true Entrepreneurs.
Yes, times may be hard and slow. More around the East Cost being with all the layoffs and such.
We have made it great with giving free supportive services to our communities, businesses and Non-Profits. The more we help people and companies. The more our company profile is exposed.
The cost of doing this is nothing. Since we consult, and refer to get through every daily challenge. Our funding raise efforts gets people involved on three levels. Non-has to do with contribution of funds.
We produce fund raisers for our Veterans, and such alike. Cook-outs and anything with food, games goes a long way. Having our company sponsor all events.
People love to be pampered and anything you can do to get that done, works. It helps them get to know your company and the people behind the scenes.
I love your gratitude method. That is what we do each day with our contractors, family and friends. Our community centers displays this with our Churches. It is growing method and natural. It is our way of saying,”We appreciate” things that people and companies do.
Mark, you are a amazing empowering person. I still wait to have a chance to sit and talk with you. You must have several worthy causes you support. The ideas you share are ones that people should understand display of gratitude is what people need.
William Earl Amis Jr III recently posted…Be A User, Not A Sales Person?
I like these ideas, Mark.
Especially during a recession or slow time in your business… you need to get creative in your marketing.
You’ve given some excellent suggestions here. I always like things that get people involved in your business, like your rewarding process where you acknowledge top performers… and then with awards, pull them even deeper into your business model.
Excellent, Mark. I know people will increase their profits if they take action on these ideas.
David Merrill 101 recently posted…List Building With Video | Introducing Breakthrough Video
Thanks David!
I really appreciate your extremely kid words.
And you’re absolutely right, whenever there is any type of slow down in business, temporary or otherwise,
it never hurts to get creative, by thinking just a little outside the box.
Thanks for your extremely kind words and for continuous support.
I truly appreciate both!