There are several ways to maximize revenue and minimize costs in the business arena. It really depends upon each industry.

The following are seven most common tips:

Increase your prices

The truth is that virtually every dollar you add to your price IS PURE PROFIT, and falls straight to the bottom line.
Consider for example a business making a profit of 5% of sales (indicating a pretty tough industry). A 1% increase in price would increase profits by a whopping 20%. Or consider a business making profits of 33% of turnover (probably a relatively easier industry). A 10% increase in price would boost profits by 36%!!
The reason for this phenomenon is that all costs are currently being covered, so the extra revenue from a price increase is pure profit. Because the price increase applies to total turnover, but the impact is on the much lesser profit, there is what we call a multiplier effect (or leverage). A small percentage increase in price results in a much larger percentage increase in profits.

Decrease the cost of goods for each purchase

One of the main drivers for continuous process improvement is cost of goods sold reduction. The real time cost information predicted by the cost management platform provides visibility to the cost effects of the many decisions made during a product’s production lifecycle.

Sell higher margin goods and services (Niche Products)

Niche marketing is a great way to obtain a high profit margin. In niche marketing you find a small segment of the population that is under-served and market a relevant product to them. An example of niche marketing would be marketing an organic soy burger to a small vegetarian community in a city consisting mainly of meat eaters. If there are few, or even no, competitors offering a similar product to this niche market, you can demand a premium price for your product. Niche marketing is not difficult, by following a few steps almost anyone should be able to sell niche products.

Increase conversion rate

Increase the value of your product.  At the end of the day, you need to feel 100% that what you are offering is better than anything else available and then this value needs to be communicated in your sales copy.
Add videos of testimonials. Testimonials of your product not of you personally.
Price test different prices every couple thousand visitors. 1000 sales at $17.95 is better than 150 sales at $27.
Change up your product. Sometimes the term ebook can sound a little tired and lack lustre. Perhaps switching it to a “learning kit” or a “health program” can add a twist that could stimulate new sales.

Reduce expenses

Review all of your business expenses to identify those costs that can be easily eliminated without any negative effect. Target frivolities like buying doughnuts or candy bars for the office every week. If these purchases represent a benefit you want for your staff, replace them with a less expensive reward that may result in greater value like increased recognition with certificates of achievement.

Evaluate your staffing costs

Your workforce represents the greatest fixed cost of your enterprise, so ensure that each employee is delivering real value in their position. Determine if you can reduce or get a greater return for the dollars you spend. Offer a three-quarter-time employment option that includes a reduced benefits package, and you can achieve significant cost reductions.

Analyze your purchasing practices to identify any economies you can achieve

Join a quantity purchase group or buy in bulk at a discount and renegotiate service contracts. Buy wholesale or direct from the manufacturer, or purchase equipment and furnishings from resale vendors.Maximize your marketing budget by employing low-cost public relations strategies, social media and Internet technologies. Implement marketing strategies that are more controlled, focusing your marketing efforts to your targeted audience. This will not only save you money, but also increase customer response rates.

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