More Sales Part two

Fourthly – Develop new pricing structures

This one is important – don’t forget that the typical SME often tries to gain business by undercutting the opposition. While this might work briefly in the very short-term, it doesn’t engender any customer loyalty. In fact, the only customers who will come to you are those out looking for a perennial bargain. So, as soon as you’re forced to raise your price (and make no mistake, this WILL happen), these people will leave you faster than you can say ‘rats’ and ‘ship’.

Worse still, SMEs often fall into the trap of ignoring their costs of production. Don’t forget – you have fixed costs (those associated with running your business – rent, power etc) AND variable costs (those associated with producing the item or delivering the service – buying in labour, materials etc). Both these need to be factored into your pricing structure.

And, don’t forget the economic argument of Total Revenue. So, if you raise your retail price, while it might result in fewer sales, those sales could ultimately be more valuable, as well as meaning that you may be less busy and hence more able to take on other more profitable customers.

Fifthly – Seek testimonials for existing clients

These are vital – endorsements from existing clients or customers are like ‘gold dust’. They demonstrate that others who have used you in the past are happy with what you did – remember that Word of Mouth is the most useful form of marketing, because it’s someone independently who is saying nice things about you.

While advertising is useful for raising awareness of you, your brand, your product & service, people know it’s paid for. As such, they don’t truly believe it nor engage with it. Testimonials provide that missing link – use they wisely.

Finally – Remember two ways to increase sales – new customers , or sell more to existing customers. Recite this every day – and watch your business grow.