Knowledge Is A Real Power: One Thing I Introduced That Changed My Business Profits, Check It Out -By Nwosu Chidiebele

INTRODUCTION

There are many challenges of business but one of them is how to make more profit. This is because, with more profit, there comes the capacity of business to survive and excel to achieve it’s core objectives. But in spite of all business challenges, the begging question remains. How are you going to earn more money from your business? Should I stock more goods or increase the paying customers? Should I show more commitment or go for capacity training? In school, we were told to sell better – communicate it constantly and frequently, explain it, and try to make sense of it. It’s all about sell, sell and sell. The reality is most successful businesses excel at one thing than mediocre businesses don’t – maximizing opportunities. When we maximize opportunities, we have maximized profits. Now, have you ever gone shopping and you ended up spending above your budget? You might be thinking you are conned. No, not at all. You all need what you bought. The reality is that the salesman has used the power of profit maximizers to increase his profit. When you use profit maximizers, you gain more profit for your business. Let your competition worry about how to save money here and cut costs there. You will be focused on growing profits, not cutting costs. Your business growth methods are to ‘’increase the average transaction value per customer’’. That’s where the profit maximize comes very handy.

Picture this scenario.

You went to a beer parlour and the attendant asks ‘What would you want Sir’. She asked. You ordered some drinks, she went off and returned with them. While she was opening them, she looked, smiled right into your face and said. ‘’We have Abacha o’’. Maybe you ordered for some. Plus she was persuasive in describing it. She zooms off and returned with the plates some minutes later.

And while she dropped it, she was making conversation, smiling and teasing. In the process, she dropped a hint about how great their barbecue was. At this point, your friend demanded a fish and then she brought it. As she was setting it on the table, she whispered in a ‘’friendly and confidential’’ manner  ‘’We have girls o’’. ‘’What? You are stunned. Lost.  She looked at some girls on a table close-by. You followed her eyes, got the message, threw your head off and laughed. ‘’No abeg, let it stop here’’. You told here. ‘’We are okay’’. Check it out. I want you to observe a trend. She offered Beer. Then, she came up with a complimentary product as Abacha to go with the beer. Quite obvious, then another item, a fish and all out. Then the last offer. She never stops at the Abacha. This is called Profit maximizers or sales funnels.

Now, what profit maximizer do you have in your business?

If you don’t have any or much, then you are leaving money on the table. If you do, I will ask, ‘’How many’’? Is that number enough or can you add some more? Yesterday, Chioma went to the market to get fresh tomatoes for stew. It was plenty to be blended at home, so she had to go to another shop to have it ground. Imagine another shop to have grind her tomatoes. Now think of it, ‘’Imagine how many people that buy tomatoes from this lady.

Imagine how much she loses from everyone that goes somewhere else to crush their tomatoes. She should have sourced for money to get a little machine and have someone operate it for her. You should not be like the Tomato woman. Be like the smart waitress.  On a business sense, you ask yourself, ‘’What extra product can I offer to the people who buy my stuff to maximize my profit’’? What profit maximisers can I introduce to boost my business? But note that your profit maximizers must compliment your main product. If you sell brush, throw in brands of toothpaste, then cups, then teeth whiteners and maybe teeth check too. Please don’t offer tooth pulling services if you are not a dentist.

Have you observe Shoprite stores very well, they know how to maximize profits.

They have some shelves close to the checking out counter. This is for a purpose. While you stand in line to pay for what you bought, you see beautiful brands of sneakers before you, cups, wine openers etc. Their purpose is to make you keep buying right to the door and before you know it, you are pulling them off to your already filled basket. This is the power of profit maximizers- to increase the average transaction value of your customers. Hence while average businesses are focused on a single offer, smart businesses are creating funnels with multiple channels