Every business owner wants to increase revenue. This is because it allows them to grow their company and hire more employees, which in turn increases productivity. However, many business owners are unsure of how they can achieve this goal, read this blog post to know-how!
In business, total revenue is the amount of money brought in from sales volume. In general, increase revenue means greater output from a given input. When analyzing changes in total revenue, it's important to understand what components have changed; for example, an increase in price with no change in sales volume can actually lead to a decline in total revenue.
Revenue is also defined as "the income that a company receives from its normal business activities, excluding income arising from any investments."
This definition reflects the fact that not all transactions result in revenue; many factors need to be considered when determining whether or not something will result in revenue (e.g., time).
For instance, if a business pays for an advertisement in a newspaper or TV, that will cost money but may not result in revenue.
In business, "sales" is most commonly defined as the total amount of goods and/or services sold during a given period of time (e.g., daily sales). If sales are up, then this represents the increased output from a given input--more goods were sold during the set period of time than before. This can also be thought of as increasing market share; if one company's sales grow while others decline, the company's market share would increase due to its relative success compared with competitors.
Sales are also defined as "the number or amount of items sold." This definition is most relevant to businesses that are concerned with volume, or the number of units sold. For example, a grocery store may determine its sales by how many cases of soda it sells each day.
If you want to improve your revenues or sales, then define what "improved" looks like. Is it a certain percentage increase, or total revenue in a given time frame? Or is it both? Identifying specific goals can help ensure that an improvement in one area will not offset the decline in another.
Repeat customers are already familiar with your company and its products/services, which means they are less likely to seek out competitors for the same product(s) or service(s). Targeting repeat customers is an easy way to grow sales without compromising existing relationships.
You already know what your former customers want, so consider adding items or services that might attract them to return. This doesn't mean lowering prices or offering a "buy one, get one free" deal. It simply means creating incentives that might entice them to re-engage with your business.
Expanding geographically has a few benefits: first, the laws of supply and demand suggest that expanding into new areas will increase demand which should lead to higher revenues; second, the increased geographic reach can be used as a marketing tool to differentiate yourself from competitors who have not yet established themselves in other regions; third, larger potential customer pools may result in increased sales volume without any additional effort on your part. Thus resulting in increase revenue.
In most cases, increasing price is an effective way to boost revenue, assuming demand remains the same. It's important to consider how other factors may change as a result of a price increase, however. If you have competitors, for example, they might begin to cooperate more with one another and lower their prices as well -- all else being equal, this would reduce your market share and lead to a reduction in total revenues.
Offering new items or enhancements to existing items can expand your current product offering while increasing overall sales volume. For example, if one of your company's offerings is a software program used by businesses to make shipping decisions, you could add additional programs that help companies manage shipping costs or manage freight capacity could also produce an online course aimed at helping customers become more efficient and profitable when using your program, and then charge a fee for the course. Some tools like systeme.io and Teachable are great to help you with this.
Bundling is a way to increase sales by offering multiple products together, so they appear as one item when pricing. For example, if you own an internet hosting company that hosts databases in addition to websites, you could add website design services at no additional charge to customers who also purchase database hosting from you. Customers would only pay the total price of providing both types of service; bundling can boost overall revenue without any decrease in demand for individual items within the bundle.
Upselling involves encouraging customers to buy more costly items (e.g., a hamburger with fries) or to purchase additional items (e.g., a T-shirt as a souvenir for attending a sporting event). It isn't the same as bundling because you aren't offering multiple products together; rather, you are encouraging existing customers to increase their orders by offering more profitable items at the point of sale.
Offering an expanded range of payment options is another way to boost revenues and sales volume without increasing prices. For example, if your business sells general merchandise online, allowing customers to pay via PayPal could encourage repeat purchases -- and it might also attract buyers who prefer not to enter their credit card information repeatedly on different websites. Other methods of payment include cryptocurrency (e.g., Bitcoin), layaway plans, and direct debit from a customer's checking account.
Many companies offer discounts if customers pay early or on time with their credit card charges. But offering a discount for delayed payment is another way to increase sales without increasing prices. For example, an online retailer could offer one week of free shipping if a customer pays within 10 days of purchase instead of the normal two weeks allotted by most shippers. Customers who delay payment would still be paying full price, but those who pay quickly wouldn't feel as strongly that they are being charged more than those who don't pay as quickly.
Another way to boost your revenues and sales volume is to change who pays for shipping or delivery. Offering free shipping is the most well-known example of this sales tactic, but you could also try offering discounted rates if customers collect their products in person instead of having them delivered to their door. This is another proven strategy to increase revenue.
Offering recurring deliveries or other services can boost revenues because customers receive items on a regular basis without incurring additional charges, which means they may be more likely to make repeat purchases from your business. For example, a linen rental service might charge a lower rate for towels and sheets that are included every time a customer rents an apartment from one of its clients, rather than charging based on how many times the client uses each type of product. This would incentivize customers to hire the linen service more frequently.
Many businesses turn to temporary price cuts to encourage customers to make purchases without worrying about hurting their bottom line in the long term. For example, an online retailer could offer 10% off clothing for each item purchased if customers spend over $50 when checking out -- but only until the end of the month. This would create a sense of urgency among customers who are trying to spend less money before they commit to paying full price again.
Creating specials or incentives can help increase your revenues and sales volume without increasing prices permanently. For example, an online store that sells outdoor equipment might run a promotion offering free shipping on all orders placed before the end of March. This would entice customers to place their orders earlier than usual so they can qualify for the promotion. You could also adjust your current payment options or offer free products if customers spend a certain amount on their order, which is another way to encourage future purchases.
Finally, you should talk to your customers about what they want and need if you're having trouble increasing your revenues and sales volume. This can be as simple as asking them where they shop now or how much they would be willing to pay for a certain product or service. You could also try online surveys, focus groups, or social media feedback forms for more in-depth data on customer preferences and opinions. A positive brand image and word of mouth are key to increasing revenue and sales volume because satisfied clients are likely to recommend your products or services to others -- which might encourage future purchases from those new customers. Positive online reviews help attract new buyers too because they create trust among web shoppers, who may find it easier to make a purchase after reading encouraging comments from others.
Brick and Mortar: You can't be in two places at once. You have to show up for work (or allow someone else to do it). Your customers might not like having their phone calls intercepted during business hours; they may want face-to-face communication rather than a telephone conversation, or vice versa. They might feel awkward talking about money in front of other shoppers.
Cold Call: No one loves the cold call, including the person receiving it. A good "cold call" makes you sound like a used car salesman; a bad one, like an idiot who is trying too hard to sound innocent. Cold calling doesn't give you much time to say everything you need to say. You could be "read off the script" by someone you can't see (the secretary, gatekeeper, assistant), and your message doesn't seem to make any impression anyway.
This is not so common in business today, although there are still companies that use Sales Incentive Programs. These programs are structured to give employees an incentive for meeting or surpassing specific measurable goals related to revenue and/or profitability.
A classic example of this type of program is the "Gainsharing" Program that was popular in American Companies during the 1970s through early 1990s (and remains in effect at some companies today). A Gainsharing Program sets up a separate entity that represents non-management employees (usually referred to as members), usually one representative per bargaining unit.
The purpose of establishing such an entity is to empower the membership with direct input into how gains are divided (i.e., the division of gains). Gains, in this context, are defined as revenue above and beyond a pre-established level. The larger the gain, the greater the portion of the gain that is allocated to non-management employees.
Goodwill or "public relations" means creating good relationships with people who may be important to you later. Goodwill can take time, but it will pay off if you need their help sometime - maybe because you're expanding your business into their area, opening another branch or store in town, or hiring their employees away from them! These things don't happen overnight - so developing goodwill takes patience and consistency on your part. And it's even more important if you're hiring - because the people you hire will be representing your business to the public.
In some businesses, it's difficult to attract customers on a national or even regional scale... But within an industry or community, competition is limited. In fact, people may actively seek out the products or services of certain companies because of their good reputation! Obviously, earning a reputation as a consistent supplier who delivers quality at competitive prices isn't going to happen overnight - but with hard work and consistent behavior over time, it can become reality for any business that deserves it.
Technology is changing fast and if not kept up with will make a company look outdated and unprofessional. As a company and/or an individual you need to consider how professional you look online, whether it's having a business or personal website, social media profiles, or even an email address that is easy to remember. This doesn't cost anything for the most part but will help increase your sales if done correctly.
This is a very broad subject and some of the points mentioned above can be researched further as to why they are effective. Successfully running a business requires you to create your plan, set goals, and figure out how to reach those goals. There will always be bumps along the road but with perseverance and determination, anything is possible.
