Do you instinctively know that you have some customers who should be doing more business with you or have a sneaking suspicion you’re leaving money on the table with some of them?
As we enter an uncertain Fall, full of global economic slowdowns and uncertainty about upcoming elections, its time for you to take back control of your success for the remaining few months of the year by plugging your revenue leaks. Most firms leak revenue in many small ways, but here are just two you can take action on tomorrow.
Two Ways to Plug Your Revenue Leaks Starting Tomorrow
- Find 1% everywhere to stop leaving money on the table
- Find your lettuce to do more business with existing customers
Find 1% Everywhere
The typical company sees a bottom line increase of between 16-38% for every 1% of value-based pricing they find on the top line. So your quickest and easiest way to success this year is to find that 1%. There are dozens of ways, however one of the fastest and easiest is simply “no round numbers” when you’re approving discounts. Round numbers were used by rote before the days of calculators and smart phones, just because the math was easy! We don’t live in those days anymore.
Whether your discount is 5%, 10%, 20% or more… reduce it by just 1%. Time after time I’ve worked with clients on this and eventually we find they’d been leaving a lot more than 1% on the table, and we’ve often doubled their profitability very quickly with this approach.
Find Your Lettuce When You Shift Your Pitch
Finding your lettuce relates to a signature talk that I often give at Sales conventions, because it’s a powerful metaphor that delivers rapid results. Think about the bagged lettuce selections in your local grocery store, which are priced a minimum of 5 times higher than a head of iceberg lettuce, often 10 times more. Why do we all willingly pay so much more? Because the bagged, washed, assortments are the pentefecta of value add that drive emotional decision making as well as logic: bagged assorted lettuce saves us time, actually saves us money, solves a real problem, creates a feel good, and provides peace of mind.
Here’s the game-changer
When you know you have some customers who should be doing more business with you than they are, the game-changer is closing the value gap by providing more value in as many of those areas as you can. You need to “shift your pitch” with a technique such as the Value Conversation I teach my clients, which digs deep not by pitching your product but by getting inside their heads to find out where you can tap into their emotional decision-making needs.
Often as you listen closely you’ll find your customers are simply not aware of other products or services you already offer, and shazam, all of a sudden you’re doing more business. Often you’ll find there’s a way to save them time or money by offering a better assortment, rather than having them buy their own “salad ingredients” independently. A ball-bearing manufacturer discovered far more business when they listened to their customers and realized there was a need for a full repair kit, of which their ball bearings were only a small element.
Want to continue the conversation to determine your best next move of plugging your revenue leaks? Book a complimentary Accelerator Call with me and let’s get you back on track for a successful year end.
Stay tuned for STEP III – coming out on Tuesday, September 8th!
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