success - Turbo Coach, achieve breakthroughs - Brian Tracy

Seven Ways to Increase Revenues
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Consider the case of Bavarian Motor Works in Germany. In
the 1970s, the company radically changed its marketing approach,
positioning its automobile as ‘‘the ultimate driving
machine.’’ The company spent millions of dollars on a successful
advertising campaign aimed at driving this image into
the minds of consumers. The company was then able to raise
prices based on the new perception of its product.
6. Make more profitable sales. To this point, we have
covered four ways to increase gross sales revenues. But what
is of paramount importance to any business is cash flow and
profits. In addition to achieving this end by increasing gross
sales revenues, you can reach the same goal by improving
sales margins—that is, by increasing net sales.
Examine the profitability of each of your customers. You
may find that it varies enormously. Some customers require
more servicing after the sale than others. Some have a record
of returning products more frequently. The size of the average
purchase of each customer will vary. So, too, will some
customers purchase more expensive products than others.
Each of these variables affects the profitability of each sale.
Also determine the profitability of each product. If you
are offering more than one product, you will find that some
are more profitable than others. Perhaps they have a higher
margin based on current pricing, or maybe they are slower
to turn over and eat up capital in carrying them as inventory.
You can significantly increase the profitability of each sale by
focusing on the sale of your most profitable products.
Do you know the profitability of your individual customers
and products? This information can be a key to increasing
your net revenues moving forward.