Businesses are constantly looking at ways to lower costs and increase revenue. When working to a cost-based pricing strategy, there are various ways to work on improving your margins to get better profits. Check out these tips to consider when reviewing your revenues to make more margin from your print.
Providing a superior service for your customers means you don’t have to concentrate on price alone. Whether you’re offering more services than your competitors or you’ll go the extra mile where others don’t, ensuring an amazing retail experience and adding value in other areas will stop you slashing prices. Read more in The Print Shop Revolution eBook.
Although discounting is a great way to capture the attention and bring in new customers, businesses often slip into a discount rut, running them consistently and damaging your margins long-term. If your margin is 50%, a 10% discount will mean you’ll have to find 25% more sales just to stay balanced! Be tactical with your offers to avoid a constant slip on profit and keep monitoring how much margin you’re losing from them; it’s about finding the right balance.
Cost of goods sold can be significantly reduced without compensating on quality by changing supplier. Make sure you’ve evaluated all the options available and review often to keep up with price changes. Scrutinise your bills and watch out for anything you’re being overcharged on. Even switching energy suppliers to save cash will be seen on your margins!
Print Business’ main expenditure will always be cost of production and running the physical shop. Consider offering a new service that stems from print with a higher margin. These can range from building an online quote system to providing design services for your customers. You’ll still be supporting your core competency, however there are valuable upsells to offer which can provide a more comprehensive marketing service.
- Upsell and Cross sell to existing customers
It’s five times easier to sell to existing customers than new ones. By increasing the amount you sell to an existing customer order you will decrease the cost per sale in terms of time & money acquiring that customer. Your marketing costs will be cut, and will be fed back into your profit margins. You could build an email list of existing customers to send marketing material to, or even drop a call to more established client’s asking if they have any more print work on the horizon.
- Reduce Operating Expenses
Your margins will thank you for dropping expensive operating bills which don’t contribute to the production of products. Simple changes such as turning machines off when not operating or investing in less energy consuming and more efficient machines will shave operating expenses.