As a small business owner, you know it takes work to make a profit. Discovering a solution to higher revenue takes time but between running your operations and planning for the future, you might not have the opportunity to brainstorm your next big money-making idea.
That’s why we’ve created this guide. From membership programs to redesigning your marketing materials, we’ll go in-depth about raising your bottom line and building a better business.
Changing Your Pricing
If you’re a business, you’re selling your goods or services at specific price points. While you might think your pricing is already set in stone—after all, it’s based on costs—a quick refresh of your pricing system could be what you need to increase your overall profits.
When gauging your pricing methods, you can consider:
- A lower price – Simply lowering your prices by a small amount could be the necessary change to bring more customers to your business. Sometimes the difference to the customer is less the actual cost and more the way the numbers look. Don’t overlook the psychological aspect of placing yourself as the best value option.
- A higher price – Have you underestimated yourself? Customers may be more willing to pay a premium for what you offer, and that slight nudge in pricing could mean an increase in revenue. Be mindful not to raise prices in a way that will cause a shock to customers. Try to implement price increases over an extended period of time for your current customers to adjust.
As a business, your prices should be fluid enough to keep up with shifting markets and demands. Costs are bound to change and your pricing system should reflect that.
Shipping Discounts and Bundles
If you’re not interested in making complete overhauls to your pricing system, you can still implement cost-cutting measures through:
- Free shipping – If you’re shipping goods nationally or internationally, consider giving your customers a free shipping option with a minimum purchase amount. By offering customers free shipping, they’ll feel an added value to their purchase.
- Bundles – Bundles encourage more purchases for more savings. If you’re selling items that pair well together (from apparel to delivered meals to different home services), you can create an incentive for your customers to try out different items together at a reduced price. As always, more sales equal more revenue, so start brainstorming possible pairings for your goods or services.
Increase Your Rewards
If you’re looking to make your current customers happy while reaching out to new ones, consider your reward offerings. If your customers feel that they’re getting more than just their items with each purchase, they might be inclined to spend more frequently.
Reward programs can work in a variety of ways, consider the following options for your small business:
- Coupons and rebates – Your customers might be waiting for a deal, why not give them one. Offer coupons, discount codes, or rebate offerings. By creating a limited-time offer, customers may be more compelled to make a purchase, as opposed to waiting. Make your next big sale an event to remember.
- Purchase points – By creating an in-store point system, customers can earn with every purchase, racking up points that they can then spend on your products. Purchase points can create a beautiful synergy, encouraging customers to purchase frequently to earn more points.
- Flash sales – Excite your clientele with 24-hour flash sales. Instead of coupons that can be used for a week or two, a flash day can act as a quick jolt of purchases. Give your audience a good reason to pick up the items they’ve been thinking about. But keep your inventory in mind as you might sell out quicker than you expected.
Rewards and incentives are great ways to drive up business. That said, you should always double-check the calculations to make sure you can offer your products at a discounted rate while still making a profit. For a business owner, there is such a thing as too good a deal.
Refine Your Marketing Strategy
Who are you and what are you trying to say? These are the first questions to answer when you’re looking to build a new marketing strategy to increase interaction and generate more profits.
When deciding on a marketing strategy, it’s also key to hone in on the specific places you can interact with your target audience. Because of the multi-tiered nature of ad campaigns, it’s recommended to try a variety of mediums as opposed to putting all of your marketing dollars toward one.
When building your marketing campaign, you can look into options such as:
- Online marketing - Now that most of us have a smartphone with us 24/7, we’re shopping more on our phones for fun, out of boredom, or for a purpose. 67% of users admit to window shopping for fun on their smartphones and 77% impulse buy from that fun. Mobile web traffic has consistently accounted for about half of all global web traffic since the beginning of 2017. That means that there is a lot of opportunities for your small business to connect with consumers by building a strong website.
- Social media marketing – Not only are we watching videos, but we’re also interacting with the brands and companies we like through social media. Whether through sponsored ads or company accounts, there’s plenty of room to advertise on the platform of your choice.
Choosing Your Voice
Consider how you’re communicating with your customer base and keep it consistent. 77 percent of consumers buy from brands that share the same values as they do. If you own a pizza shop, you probably shouldn’t be using aggressive language, if you run a daycare, make sure your ads are communicating specifically to parents.
There’s room for creativity and originality when developing your marketing strategy, but you should try honing in on the right voice for your small business to create consistency, whether it’s:
- Aspirational
- Energetic
- Down to earth
- Humorous
When it comes to marketing there are almost unlimited options, so picking the right process can be more trial and error than you might imagine. Once you’ve found a strategy that works, you can start growing your brand recognition, and with that your profits.In fact, consistent presentation of a brand has seen to increase revenue by 33 percent.
Offer New Services
Are customers looking for something you’re not offering? One way to start bringing in new revenue is to consider updating your services and inventing new ways for customers to engage with your products.
Reward programs can work in a variety of ways, consider the following options for your small business:
- Subscriptions – From streaming services to razor blades to recurring lawn services, subscription options are one of today’s most popular trends—so why not consider offering your own subscription options. Customers might enjoy your products on a regular basis, with convenient reordering options, and timely deliveries.
- Personalized services – Some customers are looking for VIP treatment. This can mean specialize services curated to their specific tastes or customizable products they can’t get anywhere else. Give your audience something special with personalized service options, and they may reward you with a boost in sales and revenue.
Andréa Homoya, Indianapolis resident and co-owner of Ash and Elm Cider Company had this to say about offering a new quarterly subscription service, “It’s, in some ways, kind of a long game. It’s getting us on the radar of the wider world as a whole.”
Changing your service offers might be a way to bring in revenue and introduce your small business to an even bigger world. As they say, give the people what they want.
Community Outreach
You’re only as strong as your community, and small business owners know that staying engaged is a full-time job on its own. If you’re looking to up your business’s profits, consider putting your community outreach into overdrive to start connecting with a whole new audience.
When looking to engage with the larger community, think about:
- Former customer outreach - Sometimes, the best lead isn’t a new one—it’s a familiar one you haven’t seen in a while. Take a look at old client lists, mailing lists, and contact information, and send personalized invitations to come to try out your services or products. For example, Frank Gray at Abby Realty gives the following advice:
“Talk with past clients and everyone else in your sphere of influence[...]Ask how they’re doing and then ask if there is anything you can do for them. Before ending the conversation, ask if they anticipate having any real estate needs within the next 12 months or if they know anyone who has current real estate needs you could help with. If you have this conversation 100 times, you’ll be covered up with new business.”
- Social media outreach – Start talking to your customers through your social media profiles. Besides advertising, social media can be a way to engage, one-on-one with your audience and get their opinions. Interacting with your audience through social media can be a rewarding process that ultimately brings more sales to your business.
- Charity events – Give back to your community by hosting a charity event through your small business. Consider options like raffles, can drives, and matching donations to bring in more customers for a good cause.
- Business partnerships – You’re not in this alone, sometimes collaboration is the quickest route to building your business and increasing your bottom line. Consider cross-sales between your business and another to bring in new customers, and introduce your current ones to another amazing business.
When asked about supporting other small businesses, Logan Philips, co-owner of the Orlando-based Kindred Board Co. said, “I feel like we’re fortunate to have built our business into what it is now. I definitely want to give back and let people know that small businesses are the way to go.”
There’s a whole community of fellow small businesses out there so start building with your community.
The Best Business Ideas Begin at Nextdoor
There’s a world of resources available to your small business, so you shouldn’t have to look too hard to find the ideas and advice to start increasing profits and expanding your vision. With Nextdoor, your small business can reach its full potential.
At Nextdoor, you’ll be connected with customers who know your business best - your neighbors. Get started by claiming your free Business Page. .
Sources:
Statista. Daily time spent with video content among adults in the United States from 2013 to 2023, by device. https://www.statista.com/statistics/420791/daily-video-content-consumption-usa-device/
The Republic. Local businesses lean on subscriptions to build revenue, customer connections.. http://www.therepublic.com/2021/08/22/local_businesses_lean_on_subscriptions_to_build_revenue_customer_connections/
Small business revolution. Kindred board co. https://smallbusinessrevolution.org/small-business-revolution/story/kindred-board-co/
Forbes. 16 Crucial Actions Real Estate Agents Can Take To Improve Sales. https://www.forbes.com/sites/forbesrealestatecouncil/2020/07/06/16-crucial-actions-real-estate-agents-can-take-to-improve-sales/?sh=66e58df57929
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