by Wendy Burge
It can be a real challenge to increase profits for small businesses and solo-professionals whose sales are based on an exchange of time. However, with the power of leverage it is possible to increase revenues without increasing more time in your daily schedule. Implementing any of these powerful strategies will help put more money in your bank just by strategically using the ability to leverage your services and knowledge.
1. Sell multiple sessions as a package
If you offer services that are by an hourly rate add an option for your clients to buy special packages of multiple sessions of that service instead of one session at a time. Let us say you offer massage therapy services at $75 an hour. By developing a package promo to buy multiple sessions you can offer them a saving (and start to fill your books quickly with a set series of client appointments). For example, you might offer “Buy 5 sessions and get the 6 for free or reword it as buy 6 sessions at $450 and save $75–like getting the 6th free. This is great to pump up your cash flow in a short amount of time. Create a marketing plan to re-offer special package savings again just about the time a majority of your clients are needing to purchase their sessions again or run it consistantly as a purchase option.
2. Bundle specialty services at a higher price
Have you ever really sat down and broken apart what kinds of activities you really do for your clients? If you have not done this lately you may want to take a look at how each of the service features you perform can be turned into specialty items on their own. It is easy to just do things for people, and then realize you have put in more energy, time, and effort into a client and have not exactly been compensated appropriately for the amount that you charged. Let’s say, for example, if your small business offered printing services, it is likely that for some of your clients you will provide advice on layout, design, and creating a “look and feel” that best represent their business. This is knowledge that could be leveraged into a specialty service. For this example let’s assume printing of business cards costs $95, letterhead costs $200, and brochures cost $350 on their own and this information is shared each and every time but is not being compensated in proportion to what is being billed. However, when these items are bundled into a Complete Professional Business Stationary Start-up Kit, you could charge a higher, combined rate that would allow you to also leverage your printing knowledge about logo design and colour options at a price that actually compensates you for your time and expertise. It also allows you to give better service as you have the ability to work more exclusively with one client at this higher fee instead of multiple clients at a much lower fee/rate.
3. Create VIP programs for clients
In most small business the 80/20 rule applies to clients-that is, 80% of your business comes from 20% of your clients. Recognizing these people can become a great way to leverage your profits by developing special VIP programs exclusively offered just to them. Here you can create special promotions, incentives, and services packages up-sold exclusively to them. Leveraging existing clients with new service and product sales is a great way to increase your cash flow without having to spend a lot of energy and effort finding new clients. Again, this also allows for a small business and solo-professional to enhance their clients’ experiences by acknowledging that they appreciate their business and wish to serve them better, as well, strengthening their long term relationship with that business.
4. Cross sell complimentary services and products
Leveraging profits doesn’t necessarily come only from customers. Finder’s fees and affiliate fees can also generate new streams of income for small businesses, as well. Compensation for cross-selling complimentary services or products is another option to pump up profits without working harder. If your small business is a flower shop you may want to create a referral fee program with a local bakery, photography studio, and bridal store to cross-sell each other’s services to newly engaged couples.
Like a referral fee, affiliate fees are becoming a big income generator for many small businesses online. Maybe you are a specialized professional who regularly promotes certain products and tools to your customers. You may want to contact the parent companies of the products you recommend to determine if they have an affiliate sales program. Each time your clients purchase the affiliate’s products, you receive a percentage of the sales. If you have a website or web presence with a blog, an html code is embedded into a tag that tracks sales from your site. There are tons of great digital products available in just about every industry possible, too if you are not sure what you could offer. Check out www.clickbank.com to discover for yourself what is out there. Not only that, if you have information products which you have created, like e-books, CD series, or training DVDs, these can be sold on other people’s sites, as well. Again, you would give them a tracking number and pay them a small percentage off each sale. To set up your own affilate sales you can use a site called www.paydot.com.
5. Develop a joint venture
Possibly, a joint venture would work better between your business and other complimentary businesses. Creating a service or product that both of your businesses develop together is another way in sharing the cost and time on the marketing and promotion. In the end, both companies split the profits for the new service. An example might be an estate planning package put together by a financial planner and an estate attorney. They would share in the promotion and split the agreed upon percentage of the profits.
© 2009 Wendy Burge – Radiant Edge Consulting.
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Radiant Edge Consulting and Wendy Burge do not represent or endorse the accuracy or reliability of any of the third-party recommendations above or the quality of any products, information, or other materials displayed, purchased, or obtained by you as a result of an offer in connection with any company listed. Please do your own due diligence before purchasing any product.
