Grow Your Profits By Encouraging Your Customers To Increase Their Spending Each Time They Buy
Grow Your Profits By Encouraging Your Customers To Increase Their Spending Each Time They Buy
Here is an example of street-smart thinking by one of north America's great entrepreneurs. If you want to increase profits, trim low-profit-margin items from your product line. They may be eating up limited and valuable resources that could be better utilized elsewhere.
Tom Monaghan, the founder of Domino's Pizza, tells a story about the early days in his first pizzeria:
"One night, most of my employees didn't show up, and I didn't know whether to open or not. Someone said, 'Why don't you just cut out the six-inch pizzas?' We had five sizes, but most of our business was the smallest, the six-inch. It took just as long to make as the big one and just as much time to deliver but cost less.
"I decided we would try that," said Monaghan.
"We never got busy that night, and yet we made 50% more money than we ever had. The next night I cut out the nine-inch pizza, and all the bills caught up. I learned then that keeping things simple could be more profitable."
(Source: Fortune Small Business)
Sometimes discoveries like this are forced upon us, sometimes we are smart enough to figure it out. Which ever way it is as business owners, we must always look for ways to increase the dollar amount at the point of purchase, or offer existing customers a reason to come back more often.
If you got everyone of your customers to spend just 10% more each time they buy from you, what impact would that have on your bottom line. Go ahead do the calculations, I am sure you will be shocked.
Grow Your Profits By Encouraging Your Customers To Increase Their Spending Each Time They Buy - To learn more about this author, visit Michael Hepworth's Website.
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I always maintain that the quickest way to grow your business, is not by adding new customers, but by encouraging existing customers to buy more or buy more often.
Here is an example of street-smart thinking by one of north America's great entrepreneurs. If you want to increase profits, trim low-profit-margin items from your product line. They may be eating up limited and valuable resources that could be better utilized elsewhere.
Tom Monaghan, the founder of Domino's Pizza, tells a story about the early days in his first pizzeria:
"One night, most of my employees didn't show up, and I didn't know whether to open or not. Someone said, 'Why don't you just cut out the six-inch pizzas?' We had five sizes, but most of our business was the smallest, the six-inch. It took just as long to make as the big one and just as much time to deliver but cost less.
"I decided we would try that," said Monaghan.
"We never got busy that night, and yet we made 50% more money than we ever had. The next night I cut out the nine-inch pizza, and all the bills caught up. I learned then that keeping things simple could be more profitable."
(Source: Fortune Small Business)
Sometimes discoveries like this are forced upon us, sometimes we are smart enough to figure it out. Which ever way it is as business owners, we must always look for ways to increase the dollar amount at the point of purchase, or offer existing customers a reason to come back more often.
If you got everyone of your customers to spend just 10% more each time they buy from you, what impact would that have on your bottom line. Go ahead do the calculations, I am sure you will be shocked.
Grow Your Profits By Encouraging Your Customers To Increase Their Spending Each Time They Buy - To learn more about this author, visit Michael Hepworth's Website.
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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