4 Tips for Business Profitability

Have you noticed how to increase the purchase ticket? Pay attention to customers and how to make them addicted to your brand should be one of your goals

The first month of the year is about to end and perhaps there is a question that does not leave your head: how are you going to make the business more profitable. If so, congratulations! The most successful entrepreneurs do not think so much about selling more, but how to make every peso invested or every hour worked offer the maximum benefit.

The winning formulas that these businessmen apply are simpler than you imagine. No expensive advisors or financial re engineering: what you have to do to connect in depth with your market, listen to what it has to tell you and define effective strategies to become your best option. Thus, you will not only see your income increase, but the value of your average ticket and, in the end, the profit margin of the company.

Ready to discover those practices that will take your business to the next level? Keep reading!

1. Segment, segment and re-segment

This year, stay away from the massive, the most competitivemarkets and focus on those neglected or poorly used niches, which could mean greater sources of income for your company. The first step is to review all available information about your current clients, through a Business Administrative System. Who are your best buyers? How many times do your shops visit and how much do they spend on average? What portion of your current market do they represent? What problem or need do they have? What makes them feel frustrated?

2. Debug your offer

After identifying those most profitable niches you've been ignoring, you have to check your current offer. What are your products or services that offer the highest profit margin? Are they suitable for that new market segment in which you are going to concentrate? What improvements or adjustments do you need? During this process, you may discover that you must abandon the first product you launched to the market, or to which you have more affection. Leave sentimentalities aside, be strategic and make the most convenient decision for your business.

3. Develop a strategy to generate more conversions

The next time the company's marketing director tells you that the brand has a lot of new followers on social networks; ask how many of those people made a purchase. In the end, that's what matters! So this year, work more so that those who subscribed to your newsletter regularly visit your blog, your online store or your store on the street decides to finally try your products. And then they become "addicted" to them. If you keep costs under control, that will have a direct impact on your results.

4. Avoid business practices that can devalue your value proposition

The “discounts”, the 2 × 1 offers and the free products are more advisable for goods of mass consumption than for those of greater value and profitability. So try not to enter into these types of strategies. In the case of services, be clear with your clients regarding the scope and limits of the development of a project, advice or support. And it is better that you do it through a contract, in which the extra payments are clearly established to meet other requirements. Otherwise, difficult clients will become a true nightmare and, in the end, they will end up increasing your costs and complicating the operation.