The ONLY 5 Ways To Become More Profitable!

Let's get straight to the point. Here are the only 5 ways in which you can become more profitable.

 1)  Get More customers to buy the product/service

The first one is straight forward, get more people to buy from you. When you have more volume, you have a high turnover and consequently higher profits. Do make sure that you have a healthy margin though, because the game of volumes can quickly turn unprofitable on razor thin margins.

2) Get the customers you have to buy from you more often

This involves setting up a system where the same customers buy from you more often.  This can in be in the form of a recurring billing system or a contract but the objective is to make sure customers buy from you more than once. The more you can do this, the greater the profits.

3) Introduce new products/services

At some point you will hit a saturation point if you are selling just one product/service, even if several customers are buying it regularly. At this point it is important to introduce new products or service. In order to reduce the risk of the new product/service not selling well, try to make it supplementary or complimentary to the existing high selling service instead of introducing something completely unique. This can greatly increase your profits. On the other hand introducing something completely unique runs a greater risk of failure. You can introduce something completely unique if you can keep the costs of product development low and can afford to take the losses if the product doesn't do well.

4) Increase prices of products/services

One of the simplest ways of increasing your profit is to simply increase the price of your product/service. This maybe hard if you are selling a commodity with no differentiation or have a lot of competitors competing on trying to offer the lowest price possible. However, if your product/service has some differentiation/uniqueness of value to the customer, that may justify a higher price. When you raise your price, it is possible that some customers may leave and that may depend on the elasticity of demand for that product. However many customers will stay, especially if they are convinced of your value and them paying higher will now bring you more profits even if the number of customers decreases slightly.

5) Enter a different market

The final thing you can do to increase profits is to enter a different market. This can mean several things. If you are targeting specific industries, now you may try to sell to other industries. If you selling only in particular regions, you may expand to more regions. If you are selling only in one country, you may now target other countries. Again, similar to launching new products/services mentioned in point 3, expanding in markets that are most similar to the market where you are already selling well is the best bet to lower risk. This means target similar industries and regions so that the predictability of your success is higher and so are your profits.

A small touching story

A man came home from work late, tired and irritated, to find his

5-year old son waiting for him at the door.

SON: "Daddy, may I ask you a question?"

DAD: "Yeah sure, what is it?" replied the man.

SON: "Daddy, how much do you make an hour?"

DAD: "That's none of your business. Why do you ask such a thing?"

the man said angrily.

SON: "I just want to know. Please tell me, how much do you make an

hour?"

DAD: "If you must know, I make Rs.100 an hour."

SON: "Oh," the little boy replied, with his head down.

SON: "Daddy, may I please borrow Rs.50?"

The father was furious, "If the only reason you asked that is so you

can borrow some money to buy a silly toy or some other nonsense, then

you march yourself straight to your room and go to bed. Think about

why you are being so selfish. I work hard everyday for such this

childish behavior.."

The little boy quietly went to his room and shut the door.

The man sat down and started to get even angrier about the little

boy's questions. How dare he ask such questions only to get some

money?

think: Maybe there was something he really needed to buy with that

Rs.50 and he really didn't ask for money very often. The man went to

the door of the little boy's room and opened the door.

"Are you asleep, son?" He asked.

"No daddy, I'm awake," replied the boy.

"I've been thinking, maybe I was too hard on you earlier" said the

man.

"It's been a long day and I took out my aggravation on you.. Here's the

Rs.50 you asked for."

The little boy sat straight up, smiling. "Oh, thank you daddy!" He

yelled.

Then, reaching under his pillow he pulled out some crumpled up bills.

The man saw that the boy already had money, started to get angry

again.. The little boy slowly counted out his money, and then looked up

at his father.

"Why do you want more money if you already have some?" the father

grumbled.

"Because I didn't have enough, but now I do," the little boy replied..

"Daddy, I have Rs.100 now. Can I buy an hour of your time?

Please come home early tomorrow. I would like to have dinner with

you."

The father was crushed. He put his arms around his little son, and he

begged for his forgiveness.

It's just a short reminder to all of you working so hard in life. We

should not let time slip through our fingers without having spent some

time with those who really matter to us, those close to our hearts.

Do remember to share that Rs.100 worth of your time with someone you love.

If we die tomorrow, the company that we are working for could easily

replace us in a matter of days.

But the family & friends we leave behind will feel the loss for the

rest of their lives. And come to think of it, we pour ourselves more

into work than to our family.

The marketing concept is the strategy that firms implement to satisfy customers' needs, increase sales, maximize profit and beat the competition. ... Marketing is a department of management that tries to design strategies that will build profitable relationships with target consumers.

 

The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. Today most firms have adopted the marketing concept, but this has not always been the case.

In 1776 in The Wealth of Nations, Adam Smith wrote that the needs of producers should be considered only with regard to meeting the needs of consumers. While this philosophy is consistent with the marketing concept, it would not be adopted widely until nearly 200 years later.

To better understand the marketing concept, it is worthwhile to put it in perspective by reviewing other philosophies that once were predominant. While these alternative concepts prevailed during different historical time frames, they are not restricted to those periods and are still practiced by some firms today.

The Production Concept

The production concept prevailed from the time of the industrial revolution until the early 1920's. The production concept was the idea that a firm should focus on those products that it could produce most efficiently and that the creation of a supply of low-cost products would in and of itself create the demand for the products. The key questions that a firm would ask before producing a product were:

• Can we produce the product?

• Can we produce enough of it?

At the time, the production concept worked fairly well because the goods that were produced were largely those of basic necessity and there was a relatively high level of unfulfilled demand. Virtually everything that could be produced was sold easily by a sales team whose job it was simply to execute transactions at a price determined by the cost of production. The production concept prevailed into the late 1920's.

The Sales Concept

By the early 1930's however, mass production had become commonplace, competition had increased, and there was little unfulfilled demand. Around this time, firms began to practice the sales concept (or selling concept), under which companies not only would produce the products, but also would try to convince customers to buy them through advertising and personal selling. Before producing a product, the key questions were:

• Can we sell the product?

• Can we charge enough for it?

The sales concept paid little attention to whether the product actually was needed; the goal simply was to beat the competition to the sale with little regard to customer satisfaction. Marketing was a function that was performed after the product was developed and produced, and many people came to associate marketing with hard selling. Even today, many people use the word "marketing" when they really mean sales.

The Marketing Concept

After World War II, the variety of products increased and hard selling no longer could be relied upon to generate sales. With increased discretionary income, customers could afford to be selective and buy only those products that precisely met their changing needs, and these needs were not immediately obvious. The key questions became:

• What do customers want?

• Can we develop it while they still want it?

• How can we keep our customers satisfied?

In response to these discerning customers, firms began to adopt the marketing concept, which involves:

• Focusing on customer needs before developing the product

• Aligning all functions of the company to focus on those needs

• Realizing a profit by successfully satisfying customer needs over the long-term

When firms first began to adopt the marketing concept, they typically set up separate marketing departments whose objective it was to satisfy customer needs. Often these departments were sales departments with expanded responsibilities. While this expanded sales department structure can be found in some companies today, many firms have structured themselves into marketing organizations having a company-wide customer focus. Since the entire organization exists to satisfy customer needs, nobody can neglect a customer issue by declaring it a "marketing problem" - everybody must be concerned with customer satisfaction.

The marketing concept relies upon marketing research to define market segments, their size, and their needs. To satisfy those needs, the marketing team makes decisions about the controllable parameters of the marketing mix.

• What's Concept Selling?
• Leadership & Self Deception
• Self Analysis & Marketing
• What Job Suite's me?