Whether you’re a commercial company transporting goods across states and countries or a small business selling furniture, one characteristic can be found in any business today – you all like to make money. Surely, there’s no company out there that’s surviving by burning their investor’s cash and providing balance sheets with negative shareholders’ equity every quarter of every year. Having said this, it takes more than just determination to widen the gap between profit and loss. Here are four ways to increase the former while minimizing the latter.
Bundle Complementary Services into Existing Ones
Offering add-ons to your existing product/service line can help attract new customers and maintain existing ones. An example would be a landscaping business deciding to offer complementary pool maintenance or a medium-sized locksmith deciding to offer door or window replacements. The add-on should cost relatively little rather in comparison to a new product/service otherwise customers will not want to pay for it as they will likely perceive it as doubling their expenses.
Expand to New Markets
If you want to increase profits, you typically need more customers. To attract new customers, consider expanding to new geographic markets. It is important to determine that the area is a good fit for your target customer base. You must determine whether or not you do have an actual audience in that location otherwise you will most likely lose money from your initial investments in the new office location, inventory, and employees. Only after identifying and fully vetting a potential market for your product/service should you consider expanding to the area.
Add or Eliminate Charges
Rather than raise the prices of your product or service, add a realistic shipping or handling fee. This will help increase your profit margins. The bottom line is often the same for both options, but adding a fee in lieu of raising rates typically circumvents the negative attention and feedback your company would get from raising rates. Conversely, if sales are lower than expected and customers have complained about a handling or shipping fee that you currently charge, consider eliminating or at least reducing the charges until sales and revenue increase to desired levels.
Use Warehouse Services
Third-party warehouse companies, such as Jayde Transport, can streamline your entire supply chain, which ultimately lowers cost and increases profit. Safe and secure warehousing, which encompasses the tracking and management of inventory, plays a vital role in daily business operations for distributors and offline and online retailers. The lack of such a system can lead to order delays and project setbacks, both of which can damage relationships with customers and business partners. Third-party warehouse companies also provide short-term and long-term storage services which include container unpacking, goods distribution, and consolidation.
Increasing business profit generally that takes time and constant attention. Consider implementing the four ways we’ve listed above to increase profit. These are only a few of the many simple business hacks you can do to generate more income and grow much faster than your competitors.
About the Author:
Emma is a freelance writer from Boston, MA. She writes most often on education and business topics. Find Emma on Twitter @EmmaSturgis2.