Is the Profit Formula working for you?

Many business owners either aren’t aware of this, or feel it’s working against them! Here we explore this model in order that you may exploit it to your advantage.

Marketing

Marketing is all about getting your message across to the right people, so that they know what is available, that you offer that product or service, and why they should buy it from you. That message is broadcast to an audience with varying degrees of interest and need. Done well, it will persuade some of them to qualify themselves as cool prospects, often called Leads.

System

A good well crafted marketing system will work on those Leads to move them closer to a buying decision. Not all of them are immediate buyers, even if their needs are a close fit to your offerings, so in part the system needs to nurture the “not today” leads until the time is right for them. That means you build strong rapport in that period, while remaining very much ‘front of mind’ with those hard-won leads. Typically, we’d build in a “temperature test” to gauge immediate interest, then channel “now buyers” separately to the others. That same test would be repeated at regular intervals, to ensure they are receiving the right, most appropriate, messages from you. This is part of the Conversion process.

Conversion

We can only Convert the “now buyers”, but this approach means that warm leads require less hard sales tactics, if any at all, which means your Conversion Rate should improve. Are you starting to see how this Profit Formula can work for you?

Now that your conversions are better informed by this stage, it doesn’t seem far fetched to believe that they may buy more of your offering than was previously the case. There is also more probability that they will return with repeat business more frequently, especially if you employ another marketing loop to educate existing customers or clients.

With such a systematic approach as this, you should expect less resistance to modest price increases, for the greater sales volume achieved.

Strategies

Now if you had access to cutting edge marketing strategies, that could be applied to refine the above model even more, greater improvements become realistic, and affordable, because you would know what outcome to expect from such a systematic approach.

Illustration

The following table illustrates how a business might see rapid improvements from merely creating and implementing a system as outlined above. The third column shows how modest 10% improvements to the key figures further grows the profits in that business significantly, maybe from applying new marketing strategies. So where is your business right now? The end column allows you to slot in your numbers, or best estimates, and to see how you compare.

  Original Add System Then + 10% Your numbers
Audience ? 8,000? 100,000 100,000  
Response %   10% 11%  
Leads 8,000 10,000 11,000  
Conversion % 10% 12% 13.2%  
Customers 800 1,200 1,452  
Order Value £250 £260 £286  
Order frequency 2 2.1 2.3  
Sales £400,000 £655,200 £955,125  
Gross Margin % 50% 50% 55%  
Gross Profit £200,000 £327,600 £525,319  

Resources

This is the power you can tap into from resources I can share with you. This can not only double or triple your profits, but it can also create exponential growth for your business starting today. When you use all of our tools, resources and templates… along with the powerful audio and video training we make available to you … you will immediately begin to see results just like this. And you can even have me hold your hand and guide you through the best way to implement this in your business to accelerate these improvements.

Next steps

To discover more, please contact John Holder on 01788 812050, or [email protected]

Tagged with: , , , , , ,

Leave a Reply

Your email address will not be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.