Why Are You Doing This?
Summary
- If your business margins aren't high enough, we need to fix the business first.
- To improve margins, we might need to increase our prices or streamline how we deliver services.
- If you do highly custom work, it’s often underpriced. We should consider charging two or three times more.
- If you’re worried about finding customers who will pay higher prices, target better customers who might pay five or ten times more.
Video
How To Take Action
I would suggest implementing a few key strategies to boost your business margins effectively. Here’s what you can do:
1. Increase Your Prices:
If your profit margins are too low, start by analyzing your pricing. Chances are, you’re probably undercharging, especially if your work is highly customized. Consider raising your prices by two to three times. This can seem scary, but you’ll be surprised how often this simple change alone can significantly improve your margins.
2. Streamline Your Operations:
Look at how you deliver your services. Are there areas where you can be more efficient? Minimizing waste and optimizing your workflow can save both time and money. Small incremental changes can result in substantial savings over time.
3. Target High-Value Customers:
If you’re worried about finding customers willing to pay higher prices, shift your focus to attract a better clientele. High-value customers are often willing to pay five to ten times more for quality and specialized services. Identify who these customers are and tailor your marketing efforts to reach them.
4. Validate Your Changes:
Before making sweeping changes, test these strategies on a small scale. Try increasing prices for a few clients and see their response. Experiment with streamlining one aspect of your process to evaluate its impact on efficiency and margins.
5. Consistent Review:
Regularly review your business processes and pricing. Continuous improvement is key. Always look for new ways to enhance efficiency and further optimize your pricing strategy.
By implementing these strategies, you’ll be on a path to higher margins and a more profitable business. Prioritize small, manageable changes so you can see quick wins while setting the stage for bigger improvements.
Full Transcript
so you want to get out of the current business you're own no it's not that and why are we doing this I mean is there a problem with the existing business marins aren't high enough well then we fix the business you know what I mean so like just do we need to charge more do we need to have more efficiencies in terms of how we deliver if you have highly custom work which it sounds like you do then usually you're just mispriced you charge probably two or three times more honestly and if you're like well who's going to pay that you go to better better customers and they'll pay five or 10 times more
