Four Steps to
Cirencester Scene Magazine - Supporting Local Businesses - Buy Locally! REKINDLE
PROFIT FROM OUR EXPERIENCE
Profitable Sales Happy with your current level of sales?
No? Then the first step is to challenge you to do something about it!
You, and only you, can ‘Raise the Bar!’ That is in challenging yourself to plan for sales growth from your business. If you believe you are not getting the true potential from your business; then raise your game and set a new target for yourself! There are some bright signs in the economy around, so the timing is right to pull out the stops and drive up those sales.
The second step is to have a plan.
Think it and you can do it! The thoughts you have today are tomorrow’s actions. Look to the future and think what your business will look like in five years time. What will be its size; how many people will you have helping you; what new products and services will you be offering to all those new customers. Have a vision of what your business will look like in the future and work back from there to form a plan for achieving your dream.
In step three please consider that return will not be healthy if you go solely down the
route. This
discounting is a
slippery slope to disaster. Here’s a riddle for you. If you are selling a hundred
pounds
worth of goods and are making thirty percent gross profit (G.P.) How much more sales would you need
to
generate to obtain the same income, if you gave a five percent discount?
PRICE CUT %
20
Answer: twenty pounds worth!! £100.00@30% G.P = £30.00p £100.00@25% G.P = £25.00p £120.00@25% G.P = £30.00p
So think very carefully before giving discount; don’t be busy fools.
However, you do have to delight your customer and give them an excellent service; our forth and final step.
Had a hard look at your business lately? Is there a gap between the service you want to give to your customers and what they actually receive? Are deliveries on time and as promised? Is the quality of your products or services as advertised; do your customers always receive a smile and a warm welcome when they enter your premises? Remember, happy customers are more likely to pay on time and return to buy more.
And now for a Fifth step: Come to our lunchtime meeting on Thursday 12th September in Cirencester to hear more.
Virginia Stourton David Spreadborough
www.rekindlethespirit.co.uk
Relationship between price and quantity—It works! GROSS MARGIN %
2 11% 9% 7% 6% 5% 5% 4% 50
25
3 18% 14% 4 25% 19% 5 33% 25% 10 100% 67%
30 35 40 45
11% 9% 8% 7% 6% 15% 13% 11% 10 9%% 20% 17% 14% 13 11%% 50% 40% 33% 29 25%%
15 300% 150% 100% 75% 60% 50 43%% SALES INCREASE NECESSARY TO PRODUCE SAME GROSS MARGIN £
Cirencester Scene Magazine 01285 659673 / 07875 071555 -
info@cirencester-scene.co.uk 15
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