-
Step 1
Increase Price
If you have 100 customers that pay you $20 per month, you'll have $2000 each month. But, if you can make a way to increase the price of your product. So with the same 100 customers, you can charge them $40 per month, you'll have $4000 each month instead of just the $2000. But also keep in mind that when you increase your price, you must increase the quality of your products, as well, because your customers are expecting more from your products now than before. -
Step 2
Increase the Number of Customers
Let's go back to my previous example; you now have 100 customers paying $40 per month and that gives you $4000 each month. You can then start increasing your number customers. I know it sounds easier said than done but just think about how you were able to get your first 100 customers. Apply the same thing in recruiting new customers. Reach out to the same types of people. Also increase your advertising and marketing budgets. Referral system also proves helpful. Ask you existing customers to refer new customers. In return, give them some freebies or discounts every time they refer new customers. -
Step 3
Increase Usage Rates
Let's use toothpaste as an example. Before dentists recommended that you brush your teeth twice a day and go for dental check ups once a year. But now dentists changed the brushing of teeth to three times a day and visiting the dentist twice a year.
This increase require that people will spend more money on toothpaste and toothbrushes because they're using more of it and wearing out more quickly. Also the yearly dental costs doubles. -
Step 4
Decrease Costs
Look back at our example of 100 customers paying $20 per month, and let's breakdown the costs. Let's say of that $20, your company cost is $3 per product. Here's where you take a look at all your options and see where cuts can be made in order to decrease your costs to $2.00. If you can find a way to decrease your operation cost, your company will surely make more profits.
