1. 4 Ways To Increase Profits

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If your business is struggling and you need to improve your ways on how to earn more profit, you need to study every detail of your business. While you pay much for your advertising and other marketing campaigns, follow thesefour ways to increase profitability .

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For example; if you have 100 customers that pay you $10 per month, that totals $1000 each month. But, if you can find a way to increase the price of your product, that same 100 customers will now be paying $20 per month. That means youre now getting $2000 each month instead of just the $1000 you started with.

• A key to remember about this option is, if you are increasing the price of your service, the customer will expect more or a better value.

Increase Price

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Using our previous example; you now have 200 customers paying $10 per month and that gives you the same $2000 each month. Maybe it sounds easier said than done, however, just think about how you got your first 100 customers in the first place. All you have to do is reach the same types of people. Increase your budget for advertising and use those same methods that worked before.

• You could also use a referral system with your existing customers.

Increase The Number Of Customers

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Lets use toothpaste as an example for this one. When I was little, dentists recommended that you brush your teeth twice a day and go in once a year for a check-up and a cleaning.

• More recently, the recommendation has changed to brushing three times a day and visiting the dentist twice a year. This increase will obviously require that the customer now spend more money on toothpaste, because theyre using more of it; more on toothbrushes, because they ware out more quickly; and double on their yearly dental costs! A whole group of related products increase as usage increases.

Increase Usage Rates

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Also related to this option is the ability to create an acceptable replacement. There are a lot of people who dont have the time to brush their teeth 3 times each day. Well, now the gum companies can profit with their whitening and cavity protection products. Chewing gum is now an acceptable alternative to brushing your teeth.

Increase Usage Rates

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Look back at our example of 100 customers paying $10 per month, and lets breakdown the costs. Lets say of that $10, your company cost is $1.50 per product. Heres where you take a look at all your options and see where cuts can be made in order to decrease your costs to $1.00.

• If you can find a way to decrease your fulfillment, your company will be more profitable.

Decrease Costs

8. 4 Ways to Increase Profitability

• Using these tips you will be able to generate a steady income and provide enough resource for your business.