3 Ways to Increase Your Revenue
Profit is what fuels us. Although the old saying, “It’s not how much money you get, it’s how much you keep” is true, there are times when you need to increase profits. Sure, one way is to cut expenses, reduce payroll, and trim your budget. But let’s suppose you layoff your (or all) employee, find a cheaper lab, and eliminate all but the most critical overhead expenses, what will you do to increase your personal income each year after that?
Most people still need to contribute to college funds, retirement, and lifestyle improvement, which means you’ll need to continue to generating more sales. And if you want to make more money in your business, the only surefire strategy is to increase your revenue.
So let’s get back to the basics by reviewing the only 3 proven ways to increase your revenue.
#1 – Get More Customers
Although I’ve listed this option first on our list, it is the most difficult to do, and really isn’t the best way to go about increasing your sales revenue. I’ve simply listed it first because this is almost always what small business owners BELIEVE they should do. Most of your clients don’t have their portraits made every year, which means you need to keep a flow of new clients coming. But if you’re looking for a fast and efficient way to increase your sales, you should begin with #2 and #3 below. Attracting more customers is difficult and expensive. Unless you’re just starting out, don’t focus all your efforts with this if you can avoid it.
#2 – Increase Your Average Sale
It would be a safe bet to assume you’re leaving money on the table with every client. It’s rare that you can convert someone with a low to average value for photography to someone who spends thousands of dollars. But what if even half of your clients last year (or even those this year) had spent 10%, 20%, 30% or more? On most sales it could be done by upselling one package or print size larger than the one they were initially considering, and/or adding one or two more gift products to an order. This could have meant thousands more in your pocket by year’s end.
Of course I’m not suggesting you become pushy or manipulative because you need repeat and referral business which you won’t get if that’s how you increase sales. But presenting 2-3 options in a fun and engaging way is a fantastic way to get more total spend in every purchase. The goal here is to make it easier for your client to add more stuff to her order. Think, “Would you like fries with that?”, or “May I show you the perfect blouse to go with (this) skirt?”
#3 – Get More Clients To Buy Again
Once you’ve optimized your sales presentation to get more dollars per sale, you need to work on getting more of your existing clients to buy again. There are multiple ways to create multiple purchases. First, introduce ‘new’ products they can order from recent portrait sessions. This is hugely profitable since you don’t have to photograph them. These include products such as Holiday cards, ornaments, and gift portraits, impulse gifts such as photo mugs, key chains, for Valentine’s, father’s and mother’s days, photo Christmas stockings, candles, pillows, blankets, coasters, etc. So start by adding more products and services. Next, you need to do a better job nurturing your prospects and clients. Marketing isn’t just about leading your clients to the buying stage. It’s also about keeping your them engaged with you for years to come so you can generate repeat sales.
Use this list in this order for best results: #2, #3, then #1.