May 12, 2014 // Franchising.com // An essential factor of operating a successful business is making a profit and increasing it over time. If your business is falling short then it is time to re-evaluate procedures.
Experts at The Maids, the residential cleaning company that remains a model for the franchising industry, say following any of these tips can bring in more capital for your business.
The first step to a more profitable business is to contain costs. Inefficient practices or paying retail prices for supplies, for instance, are just two factors that cut into profits. Problems such as these must be controlled before your business will be able to generate more cash.
One simple way to improve the profit margin is to increase leads. Contacting potential clients will result in more business, either immediately or down the road, and more business translates into more money. You can accomplish this through networking, marketing or advertisements.
Similarly, getting current customers to purchase your product or service more often will also multiply the dollars coming in. Look to new or improved marketing techniques, including personal appeals, to help boost sales.
Another step is to review your price points to see if increases are in order. Business owners worry about upping the cost of services, but as the economy continues to improve, you likely will not lose many customers because of an incremental rise in price.
Don't try to outdo competitors by discounting. Lower prices might increase sales in the short term, but keeping prices low not only dips into profits but also can compromise how customers perceive your services.
Focus on items that bring in more sales and revamp or eliminate items that are not producing the desired results. In the same way, center attentions on your best clients -- usually about 5 percent to 20 percent of your total customer base – who are responsible for the most purchases.
About The Maids
Known for its 22-Step Healthy Touch® Deep Cleaning System, The Maids is the only franchised residential cleaning service to clean for health, combining environmentally preferable cleaning supplies and state-of-the-art equipment with a methodical process to maintain the healthiest living environment possible for families. The Maids enjoys a 96 percent customer referral rate, distinguishing them as the residential cleaning service of choice. Visit The Maids (www.maids.com) for more information.
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