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Posts Tagged ‘Dollars’

What are some of the most profitable words used today?

September 6, 2010 2 comments

Do you want fries with that?

Are some of the most profitable words in history. Those six little      words are responsible for millions of dollars in revenue each year for McDonald’s.

Okay it’s not the words that are relevant to you, I think your customers maybe a little surprised if you offered fries with their purchase, or maybe not, if you’re in that industry. It’s the action, the intent, the fact that they’ve asked.

What do I mean?

It’s asking for the up sell, which leads to the increase in sales, the moving of more product and the increase in profits.

McDonalds, as with many others, have successfully mastered the art of asking for the up sell. The “super size”, the “do you want fries with that”, as I’ve said, it’s delivered them many millions in increased revenue and profits, by just asking for it.

Are you using the up sell to increase profits?

This simple but highly effective tactic can be used to increase turnover and profits dramatically in a short space of time.

It can be as simple, as I was reminded with my coffee order the other day and no it wasn’t from McDonalds, as being reminded that you have an add-on product available, in my case it was a muffin.

That simple add-on of a muffin took the sale from $3 to $7.50, over double my initial intended purchase price! But it was relevant and asked for at the right time, at point of sale.

In this case these are small numbers, but doing this consistently, without sounding like McDonalds, will lead to higher turnover and increased profits.

Don’t have fries to up sell?

This tactic to drive sales and profits isn’t just restricted to the fast food outlets or café’s. Most businesses have or could have an add-on product. Here’s a few quick examples:

  • Mortgage broker – would you like insurance with that, life or income protection? (this can be sold via an affiliate with commission paid to you for referrals).
  • Air conditioner / white goods / TV and so on purchase – would you like a maintenance plan with that?
  • For an extra $5 per month we can offer you a higher spec product / plan / service.

The list can be endless but gives you an idea. Just stop think about what you do or offer and what you can add to it that’s complimentary. Think about how you can effectively introduce it to your customer at the point of sale. But don’t make it sound like McDonalds!

Look for things that will benefit the customer, not what would just benefit you.

Thanks for reading and I hope you enjoyed this post, and I always look forward to your comments.

Thanks, Tim.

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Marketing for life

August 19, 2010 3 comments

Marketing for life, what’s your customer worth to You?

No I don’t mean in terms of Marketing for life is like a puppy, it’s not just for Christmas it’s for life. I mean in terms of Customer Life Time Value.

Life time value of customers is an area that’s often over looked.

This isn’t just relevant in the business world but in the real world of work, particularly in people in sales roles.

It’s easy to fall into the trap of viewing each customer on a transaction to transaction basis. What I mean by this is that each customer is judged on individual transactions, with the bigger picture never being looked at.

Most businesses and people in sales roles generally want to see repeat business. But treat there customers based on single transactions instead of viewing them as a customer for life, one who may buy again and again and have the potential to buy in greater quantities.

Let me give you an example, Real Estate.

A few years ago I started buying property and had found an area that I was happy to invest and develop property in. I called up a few real estates in the area to try and arrange some viewings and some more back ground information on the area.

One real estate guy stood out. He offered me a full day of viewings and to drive me around the area and give me more local information. He also arranged to show me examples of properties that had been redeveloped for some ideas as well as examples of properties that his office had rented out under their management.

For a real estate, sorry real estate people, he stood out a mile as someone who viewed me in terms of the bigger picture and not just a one off sale.

So how has that benefited him doing it this way?

Well I brought three properties from him after that one visit, rented them all out with his company. I also went onto buy after two properties and now only deal with him on all my purchases, sales, developments and rentals of my properties in the area.

All because he could see the bigger picture, The Life Time Value of the customer. Clever? or just putting a little more thought into this process?

I think taking a leaf out this guys book is something we should all consider if we want happy, profitable long term relationships with the customers we have now and our customers of tomorrow.

Can it be that easy? Let me know your thoughts and experiences. Thanks, Tim.

Marketing, a rewarding investment

August 16, 2010 1 comment

Marketing is an investment not an expense:

Surely not! Marketing is an expense! …. Well yes …but NO. I will explain.

Let’s have a look at an expense. Paper clips, yes let’s buy paper clips as an example. Great invention, keeps everything tidy but beyond this does it give your business a return? Does it create sales on its own? Well, no it doesn’t.

Ok let’s try something bigger, more essential, a whole department, say accounts or operations. Yep both essential to the business, you can’t get paid if you don’t raise and invoice and collect in the money, or if you don’t deliver the goods on time.

But, all of the above are expenses. They’re costs of doing business.

I hear you cry…”placing an add is a cost”, “running a direct mailing campaign is a cost”. Yes true, but totally different.

A different mind set needs to be formed about these “expenses”. The Marketing “expense” creates new customers, without which we have no turnover for our accounts to bill for, or any products for our operations to deliver.

Therefore we are left with no other conclusion, Marketing is an investment. One that has a measurable return.

Don’t agree or have more to add?

Thanks again for your valuable time, Tim