You’re selling to other businesses. So, you’re in the businees-to-businees (B2B) section of the economy. Your business is chugging along. Maybe you’re happy with the progress and maybe you’re not.
If you’re happy with your progress and your profits, then stop reading right now and go pop a bottle of bubbly and drink a toast to yourself. You’ve arrived. And don’t read this blog anymore because you’ll be bored.
But of you’re not happy with your progress or even if you are but believe that you could be doing better, read on.
Then the question is, “how can I increase not just sales but profits?” You may be able to increase sales by cutting your prices but that does not mean your profits will go up.
You need to crank up your marketing. But will that help?. If you keep doing the same thing you will get the same results. A bit of a dilemma. So what can you do different?
How about this? Ask you customers why they buy from you. A novel idea. But who knows better why they buy from you and what you can do to keep their business than your customers.?
You will get a number of different answers that can help you direct your marketing.
The answer you don’t want to hear is price. Because that makes your product or service a commodity. And if it’s a commodity, your customers will continue to buy on price. But not necessarily from you because your competition may be asking the same question and when they hear price, they lower theirs to get your business. So, you just joined a race to bankruptcy. Not smart. If you’re going to adjust your price, increase it and offer more value.
So what do you do? You need to identify how your product or service fits into your customers’ business processes. When you know that you will be in a better position to make your product or service a crucial part of that process. More value.
Tune in next week for a real live experience I had in this area.