What are your best products or services?
Do you know which products or services are the most profitable? Many business owners don’t, and this can result in you being really busy and not making the money you deserve.
If you know which products or services are the most profitable you can focus on selling more of these and end up making more money with less effort.
When I work with clients who offer several different products or services we do an in-depth analysis to identify what we need to focus on.
Weekly Action: Make a list of all the products or services you offer and identify which are the most profitable. Then you will know what to focus on selling more of.
Working with an event company, they realised that they had several different revenue streams of which one was commissions.
One supplier they received commission from was a company which offered corporate drumming circles. When we did an analysis, they realised that even though the drumming made up just over 10% of the sales revenue it contributed less than 1% towards the Gross Profit.
Initially it was thought marketing and booking drumming was easy. However, after some analysis starting with contribution to Gross Profit, we also realised that the majority of the complaints received came from the drumming events. This resulted in more work and essentially a poor return on effort with the potential to damage the reputation of the event company.
The decision was made to stop promoting and booking the drumming and to focus on other events that were more profitable and less work. The result, no after-hours phone calls wondering where the “drummers were”, which really meant less stress for both the clients, the staff and …. more money!
If you require business advice, please get in contact with Sam at:
w: samharrop.com.au | t: (07) 4051 2221