Epsisode 25 - Understanding Profitability - Optimize Profitability Podcast

Update: 2021-03-30

Description

Hi and welcome to optimize profitability. You got me by myself today, I'm doing this because I want to do a recap of our last four sessions.

We started season two and we kicked off season two talking about profits. I mean, our podcast is called Optimize Profitability. So today we're going to talk about not just those four categories, but how and when you would implement the different ones. So the other four were introductions on how to use them and specific tools you can use. Now, let's talk about how you might want to use those in your business.

So let's recap real quick to the last four. Podcast we've done have talked about four different ways that you can go, growth, profitability, and ultimately these are the only four ways to grow profitability. So No.

One, you're going to get more customers, more customers. Hopefully you sell more people and you make more money. Right. Simple process. The other ones is get those customers to come back more often. So the more often they come back, the more they spend that increases the lifetime value of that customer.

They may come back once every six months of income to come back once every three months.

That's going to be a better return for you.

Sorry, I've got allergies, but was it just then you get customers not only to come back, but you get customers to buy more when they come. So when you get customer to come in, you now get them give them something else to purchase that aligns with the ideal product that you have in place for them. And the last one, of course, is to increase your price. These are the only four ways to increase profitability. Everything's going to fall under those four buckets, those four categories of growing your business profitability.

OK, so let's talk about when we use them. So get more customers. Here's where I see a lot of people messing up and they want to get more customers when they don't have a lot of customers. I talked to a guy yesterday. He's literally flooded with customers we're working with for some search engine optimization, helping him with the social media and everything. And the work we've done over the years is just built up to where he's got a very solid base of customers.

Now, these customers come in. He's really busy right now.

But two weeks ago he said, hey, I don't even want to do any more advertising. I just want to stop it all.

But when I met with him, we went over all it's going on.

He's like, you know, I probably should continue this because he realized you're always, always, always in the business of getting more customers. Everything you're doing is marketing. Everything you do is marketing. When you pick up your phone, you're marketing. You're trying to get those customers to come in when you post something on social media, good or bad against something or for something, you're trying to get customers to get more customers come into your business. Hopefully everything you're doing is aligning yourself in a way to spread a larger net to bring more customers into your business.

So when should you do that?

All the time. Simple. Every day. All the time. You want to make sure you bring these customers in even when you're super busy, because what happens is you get super busy, you slack off on marketing, and then all of a sudden you have a lull and nobody's coming in. No one's calling. And you pick up your marketing campaign, it's too late. Then your business is having to pay bills. And so always, always, always be working on leads and marketing.

That's something that's that's a no brainer. If you don't have a good system of bringing in more customers, you need to develop that system of bringing more customers. You may need to talk to a marketing strategist or you may need to talk with a branding brand or you can visit a challenge. We're going to have some challenges come up. I don't want to get ahead of myself there. As a matter of fact, I do want to say, if you're watching this, this is April, March, the recording this March 30th.

Actually, today we're releasing it.

But in May, we're going to have a summit. So make sure you go to DFW. DFW top dot com slash events and you'll see some information there and our upcoming events, we're going have a summit coming up this summer. It's called Make Profits Again. And one of the categories is getting more customers that may be helpful for you. So the second way of getting more customers is to get customers to come back more often. Now, here's where it gets really finicky.

What kind of customer is going to come back more often? Let's say that I sell books. How do I get a customer to come back more often if I'm selling a book? How often are they going to read a book? How often are they going to buy a new book? You know, you've got to develop those concepts or shirts we have. Queensborough is an online thing. They do Polo's and embroidery in this kind of stuff. We get emails from them constantly saying, hey, did you know we have this special coming up?

Hey, did you know we have a special on this? Oh, we have free shipping this week only. And so they're always sending emails. They're always in the communication. So when do you get customers come back? More often after they have bought something from you? It's another simple process. When someone purchases something from you, you should be adding them to a customer database. You should be collecting an email or maybe connecting with them on Facebook Messenger.

However, that works for your business and keep yourself at top of their mind awareness. It's top of mind awareness. Think about that top of mind.

Awareness means you're putting your business in front of them frequently so that they'll be remembering you when they think of that specific topic. So if they bought a book, let's say it's a Harry Potter book, a six hundred page book or whatever that is, it's going to take them a few weeks to read that book. They're not going be ready for a book tomorrow. But if you have an email campaign set up that when they purchase a book. A week later, they get an email saying, hey, how's the book going?

Do you need a new book? Here's a 10 percent discount. That would be a simple way of doing those, getting those customers come back.

So when should you do that? You should do that on a regular basis. This is a customer follow up system. Everyone should be getting customers and everyone should be following up those customers. That is the basic bare minimum of any business guy. So if you're listening to this, your best way to increase profits is to get more customers and get them to come back more often. That's a simple process. The next one gets a little bit more finicky.

It's get customers to buy more.

The man I was talking about yesterday, he sells generators when you can't get somebody to buy a generator again, because once they have a generator, that maybe another one buys a car, then not to come back and buy another car. Right. However, what can you add to that? What can you make as an aligned product? So if I sell a car, I will put in maybe a oil change place next door and I will allow them to come get all changes and allow them to come get tires rotated and those kind of things.

That gets them to buy more of my product and also get them to come back more. So they're going to think about that. So what can you do?

What can you a line in your business with your current offering that allows you to communicate in a way that helps people get more value out of your services or your products. So let me talk about this just real quickly.

If you have a product, it is very easy to find another line product.

If I'm selling dog food, it's easy to find dog bowls, dog collars, dog supplements, whatever that is, whatever that is you sell, it's really think about. But when you sell a different category where it's a very specific niche category, then you may want to say, well, how do I line up with that? Maybe you partner with someone else, maybe somebody else brings along. So we offer training at DFW Top Dotcom. However, we partner with larger companies that do a larger, deeper analysis type training.

So if you're going to become a real estate investor, sure, I could teach you some things, but I don't have the time to teach a thousand people how to be a real estate investor. Therefore, we've aligned ourselves with a company. So to go at DFW Top Dotcom, you'll see a little button that says become a real estate investor and I'll take you through a process of helping you understand how to get involved with this company that'll educate you for life time.

You see how that fits. And so getting customers to buy more doesn't mean they're always buying from you.

You may align yourself with a company that allows you to have a small profit on the back end. As you do something on the front end, you could do something as simple as Amazon. You could set up an Amazon. Store a line that's your your website so that they're buying small stuff on it, or you can find another company that works with you and increase your price. This is the last thing you should do. And I know there's a lot of people I know take your prices 10 times them and get charged people more because you're worth it.

Be careful about that. These people who are saying that have already built a following and th