The Fastest Way to Make More Revenue For Your Business
Let’s talk about the fastest way to make more revenue. What’s the one thing you absolutely NEED to do this year? Reduce your discounts and update your pricing. In today’s financial landscape it is critical that you are getting the most bang for your buck. We know you can add on new services, find new clients, and reduce expenses, but did you know the fastest way to make more money with the least amount of work is to reduce your discounts and ensure you’re pricing for profit? Focus on these things NOW to ensure you have a profitable new year. Keep reading as we share simple formulas to implement changes in these areas immediately.
First review your discount strategy; yes you should have a business strategy for every discount you offer to clients. Best practices for profitability indicate that…
- Total average of all discounts given should be 10% or less maximum
- Ensure discounts align with your brand; this puts a preference on offering demographic versus multi-pet discounts such as for:
- Military
- First Responders
- Senior Citizens
- Rescue Groups
Keep in mind that daycare packages or multiple day passes are both a form of discount you offer. Be sure there is an expiration date on all packages or passes to encourage use in a short period of time. Your business wants more frequent visits in exchange for buying a pass at a discount.
Pricing for profit means you must understand the costs of offering each primary service. There are three pricing methods and you may be surprised to learn the most important one for you to use is cost plus profit.
- Cost plus profit – 20% profit is a good goal to set
- Competitor analysis
- Value of service to your client
Don’t miss our video where we share insight on including not only the direct cost of offering services, but also an allocation of fixed costs in your calculation. We also share strategies on how to ensure your prices stay profitable over the long-term of your business. Taking the time to price your services for profit is the fastest way to make more revenue for your pet business.
