Increase your prices

This does not mean raising all your prices regardless of market conditions.
Many of my clients have said they cannot do this because if they did they would
lose customers. After all, some customers will only ever make a purchase based
solely on the price of the product or service.

Think about it: do you always buy the cheapest product or do you
look for value for money?

Many customers look for value rather than price. Perhaps your
supermarket isn’t the cheapest, but it is open longer, has friendly staff, and
is convenient.

Different people place a different emphasis on the different
elements of a package. Your job is to understand what each of your customers
values most. You will have some customers who are very price focused, but are
they all?

Similarly, do all your products or services have the same price
sensitivity?

In other words, there may be the opportunity to increase some of
your prices in certain instances.

Look honestly at your business and pricing policy. When was the
last time you increased any of your prices (even to match inflation)? Compare
this with your suppliers. If you have not increased your prices to compensate
for inflation or incoming price increases then I am sure your margins have been
negatively affected. If you allow this situation to continue then unfortunately
there will only be one conclusion.

Take a hard look at your business and decide
whether you could put up your prices on some or all of your products or
services.

Many of
my clients have selectively increased their prices asked and have seen some
incredible results.

To find
more tried and tested business improvement tips that really do work, simply
download my FREE book

“Small Business Owners…

Increase your
profits by 200% in six months ….and
still have time to spend it!”

Paste this URL http://www.alanbalmer.co.uk/free-guide/
into your URL box.

Get your suppliers to help

Simply ask your suppliers, “How can you add value to my business?”

They will not ask you how they can add value to your business so
you must take the initiative.

Ask the same question of all your suppliers – those who supply you
goods like raw materials and those who supply you services like your bank
advisor, accountant, etc.

Successful businesses understand that suppliers can be an
extension to their workforce and tap into their knowledge and expertise.

Adding value to your business could involve:

•
Better
payment terms

•
Leads
and referrals

•
Help
with promotions and marketing

•
Product
training

•
Advice
on market information

•
Joint
branding

•
Shared
costs for exhibitions.

Some of your added value solutions will cost money in the
short-term. Keep in mind your goal is long-term profitability.

Some of your suppliers may want something in
return, (for example, sole supplier agreements, guaranteed order value and
frequency, etc.). Don’t automatically tie yourself to one supplier for a quick
profit; consider your long-term requirements. Look for a win-win outcome and
make sure you are getting the best value for your business.

To get your suppliers to add value to your business you need to
ask them to help. When you do, be prepared to share your vision with them and
explain what you are trying to achieve. Discuss the challenges in front of you.
Give as much detail as you can to help them understand you and your business
when considering how they can help you.

Having done this, successful businesses always keep their good
suppliers informed of their progress. They thank them for their help. Do this
with your suppliers and the next time you want help they will inevitably
respond positively.

It’s up to you to contribute to creating and developing
relationships that add value to your business.

If your existing suppliers do not respond to your requests then
consider finding alternative suppliers who want to help and work with a
successful company. Remember success brings success.

Many of
my clients have asked their suppliers to help and have seen some incredible
results.

To find
more tried and tested business improvement tips that really do work, simply
download my FREE book

“Small Business Owners…

Increase your
profits by 200% in six months ….and
still have time to spend it!”

Paste
this URL http://www.alanbalmer.co.uk/free-guide/
into your URL box.

Let’s get straight to the point: successful businesses make money.They do other things too, but they exist to make money. All too often we don’t discuss profit as it can be seen as a dirty word, but without profits, you have no business. It is that simple. Even not for profit businesses have to focus on maximising their financial returns and maximise their budgets.

Successful businesses:

• Develop a profit improvement plan
• Understand that profit is not the only thing to focus on
• Everyone in the company needs to understand how they contribute to its profit

It is not about profit at any cost – it is about creating a balance between:

• Sufficient and devoted customers
• Developing committed, motivated and effective people
• Maximising financial returns

Getting this balance right is crucial to your successful profitability. You could easily maximise your returns by ripping your customers off or exploiting your own people and make short term gains. But it is not about creating short term gains – it is about creating long term business development and relationships. Successful businesses recognise the relationship between the three elements and manage them equally. Less successful businesses often work on all three but individually and not equally.