We have discussed two ways to increase profit, which are to increase the price of products/services and to increase the frequency of customers’ visit. The third way is to increase the volume in every transaction.
To increase volume can be done in three ways:
Firstly is through bulk discount. If your customers buy more than one unit, they will get a certain bulk discount. Your customer will be more interested to buy more units of the same product.
Secondly is through packaging. You can pack your variety of products in one package. The price of that package must definitely be cheaper compared to if your customers buy those products separately. You can package your product with a few different combinations:
1) Packaging based on products that are common to be purchased together. For example, a restaurant can package many products that are commonly eaten in sequence – soup, main dish, rice, desserts and drinks. With this kind of packaging, we can make sure that every customer will AUTOMATICALLY order five products.
2) Packaging based on product’s profit margin. You can smartly and creatively package high-profit-margin product with normal product. This way, you will be able to increase the profit and income of your business significantly.
3) Packaging can also be done by combining fast moving and slow moving products. This will give the company a big profit margin because this will help to push the slow moving product.
These suggestions sound good. At the same time, before you implement them, you must:
1) Know the best combination from those products that are being packaged together. It means, you must have the statistical data of products that are usually bought AT THE SAME TIME by your customers.
2) Know which products have low profit margin and high profit margin.
3) Know which products in your shop are fast moving and slow moving.
The moment this statistical data is available, there are many more ways for you to increase the income and profit of your business! Start PACKAGING your products together NOW!
Merry Riana is a young millionaire, successful entrepreneur, best-selling
author, dynamic trainer, and popular media personality.
In just a short period of around 4 years after her graduation, Merry has earned more than S$1,000,000 through her business.
In July 2006, Merry successfully published her first book “A Gift From A Friend” which subsequently made its way into the Best-Seller list in the major bookstores in Singapore.
Check out her best-selling book at --> www.agiftfromafriend.com
Source: www.articlesbase.com
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