eBusiness Weekly
The economic temperature seems to be rising, creating a new appetite among business owners where they are dollar-centric in the advent of the impending festive season.
Remaining vigilant and business driven while others are closing shop is a conscious choice. Some businesses seem to be transacting, business as usual — big and small brands alike. I say all of this to arrive to this simple point. While we focus on business strategies that will bring survival, survival alone is not enough. They say the best trained soldiers are made in adverse times, they even say a Zimbabwean who makes it in Zimbabwe will make it in any economy because they have a level of fortitude and resilience in them for business, success and a can do attitude.
So in case you are still gaining momentum to get to a place called “it”, as a business owner, manager, and sales revenue driver; the survival strategies which will pivot your business into growth and dominance even in the current economy, are a few strategies we will share and hopefully get an in depth feel of how to implement in your business.
Use your competitor’s resources and profit. As unorthodox as it sounds, the truth of the matter is companies should profit from their competitors. A competitor is a good guy just like you, he is struggling just like you and he has got all the same problems you have. In fact you and your competitors can help each other by filling in gaps the other has.
It is important to refer customers who were prospects, but for some reason did not buy from you, to your competitors. Work out an agreement where you earn a percentage of the profit. This way you could effectively make a tonne of money off the people you would never otherwise sell to. If there are certain procedures, manufacturing or service functions that your operation is not set up to handle as profitably or as efficiently as your competitor, rather than lose the business, you could participate in what I term a privates-label relationship with your competitor, where he does the work for you under your auspices and you pass it back to the customer.
In exchange, simply require a warrant from that competitor that he will not take that business away from you.
Second proof strategy for business performance is bump and up-sell. Offer every customer you sell to a better or added deal right at the point of sale — like a larger quantity at an advantageous price. Or package items or services in addition to the one the customer is buying. A good number of your customers will take up the offer. This simple technique could immediately multiply your profits in leaps and bounds. Some retail giants have recently adopted this technique and it seems to be drawing customers to them. If a customer buys a certain amount’s worth of merchandise , authorise your sales teams and shop floor teams to offer them up to three of something else, at a certain percentage off, or three for the price of two — but this deal will only be available to them as an immediate add-on sale novelty.
One thing is terribly important, though. Be certain you develop a compelling, believable reason why you offering the add-on or up-sell so the offer has credibility. The dynamics of the add-on concept can work anywhere especially with the festive season fast approaching. You can make the add-on or up-sell much bigger than the original purchase, too. To exemplify, let us say you run a fumigation service and you get hired to exterminate some pests. And let us suppose you charge the client a hundred dollars. When you have done the job, and the transaction is complete, you could offer this client an annual service contract for a minimum of four years.
Assuming the current value, this would cost the client $400. But you offer to give it to them at $250 if they pay now. Two out of three people will take this up-sell offer. A typical retailer can offer every customer a free quarterly wardrobe consultation with a certain purchase. Have the consultation take place at your store.
It guarantees two things:
- A higher than normal average sale (most people will spend the extra dollars to get the valuable bonus). 2. You’re locking in the customer to a commitment to come back to your store four more times (minimum) over the next 12 months, with a mental predisposition towards improving their wardrobe. It gives you an additional four opportunities to sell them something.
Up-selling is one of the most neglected yet predictably effective techniques you can use to instantly improve the average of every sales transaction. Experiment! The results will amaze you.
The views given herein are solely for information purposes; they are guidelines and suggestions and are not guaranteed to work in any particular way.
Robert Gonye is a Business Growth Expert and Influencer. He writes in his personal capacity. Comments and views: [email protected] twitter@robert_gonye.
