Every entrepreneur is looking to grow his company’s revenues. But regardless of what industry you are in, this is often more difficult than it seems.
Increasing your revenues takes a great deal of hard work, time, dedication, impeccable timing, and a little bit of luck.
There are basically two ways to grow your revenues – either increase your selling price without dropping your sales volume, or just increase your sales volume.
A short term promotion is an obvious approach, but building long-term revenue isn’t always as simple.
Here’s a list of ideas to grow your revenues.
Expand Your Audience
The fact that your revenues are stagnating isn’t always a reflection on your sales efforts. If you’ve been hitting a niche multiple times, you are going to get diminishing returns. The people you are selling to already have your product and they don’t need another.
As your company grows, you will regularly reach these ceilings. Break through them by expanding your audience. It may mean expanding geographically, or it could require you to target new niches.Break through them by expanding your audience. It may mean expanding geographically, or it could require you to target new niches.
Perfect Your Pricing Strategy
Price is difficult to get right. The race to the bottom by constantly discounting can backfire and lead to your product being perceived as low quality. On the other hand, if you keep your prices too high, it could lead to reduced sales volumes.
Changing your prices can have a big effect on your overall financial performance. Like with most things, it may require a little bit of experimenting to find your sweet spot. It’s also a good idea to do a bit of research because sometimes the market may have already determined a price.
Try temporary price changes to see how they affect your sales. You can raise prices while increasing the value proposition by bundling products together. This may mean less profit per product, but it could increase the average value of each customer purchase. And it could expose customers to products they never would have otherwise purchased.
Think long-term and think customer retention.
Re-energize Your Sales Niche
Niches come in cycles. There are times when everyone wants to buy the latest sneakers and times where everyone wants to buy the latest video game. It’s impossible to keep a niche energized at all times. There are occasions where the excitement will wear off and people will be looking elsewhere.
It’s up to you to re-energize your sales niche. Even your competitors will thank you for this because a general lack of interest impacts everyone. Making your stuff trendy again can also happen by associating your products into current events.
Make More Options
The purchasing options you offer could be coming back to bite you. The problem could be a result of simply not offering the functionality your target audience wants.
For example, your business may not accept credit cards. It may be an inconvenience to setup a credit card option, but you are turning away a huge part of the population by not doing so.
You may also want to start adding things like subscription sales. Customers making regular purchases prefer to do it hassle-free, so give them that option. This can also give you a recurring fixed income.
Depending on your industry, there may be more options you can take advantage of. An increasing number of businesses are now offering coupon programs.
Double Down on Successful Email Marketing
Many companies are squarely focused on social media marketing, and rightfully so. We are living in a digital age in which consumers expect every brand and company to have a social media presence. However, email is still an incredibly important part of marketing, and still generates the highest return on investment.
Developing a successful email marketing campaign is worth every bit of time and effort. I personally prefer doing fewer things, but I like to do them more consistently.
Also, consider providing incentives to grow your email list as incentives increase subscription rates. Several consumers might be hesitant to join your opt-in mailing list, so make your email list worth their time by rewarding subscribers with useful information, coupons, special deals, advance notice of upcoming sales, and other perks.
Sometimes, a company’s revenues hit a ceiling, and that’s the time to try something different. It might be an opportunity to add some freshness to the brand, or even hire someone who brings a new set of eyes, or some fresh ideas to rejuvenate your brand.