A Challenge Of Multiple Dimensions
Although there may be millions of great business ideas, there's only 3 different ways to drive more cash into your kitty. You can work on the three ways individually or, you can combine your efforts and increase your results from all three at once.
Of course, you can always expand your potential cash haul by creating new corporate entities or adding brand new product or service lines. But, within your current business sphere, there's only three routes to more revenue.
Route Number One
Route number one is the go-to strategy for some (maybe) easy additional bucks. That is to increase the number of customers or clients you bring in. Run more ads. Advertise in an new medium. Knock on more doors. Call more prospects on the telephone. Reach out on social media.
Because I've usually worked in the business-to-business field, my favorite method of drumming up new business is by using the telephone (I even wrote a manual about it). If you do it right it's relatively painless for everybody!
Often, this is where a tactic of lowering prices for a special event or adding in an additional free bonus comes in.
The price-lowering idea cannot be used too often because you will, ultimately, train all your customers to only buy from you when you discount your price. You won't increase revenue, you'll just depress your regular flow of cash. That's exactly the opposite effect of what you're trying to accomplish.
(There's kind of a sub-number 1 category. It has to do with massive improvement of your product or service that becomes well known and is easily documented. And it will be easy to craft advertising messages around the improvements so as to naturally bring in more customers.)
Route Number 2
So, the second way to haul in more cash is to entice each customer to spend more money with you.
For example, you may offer a discount on each piece for a higher volume of units. I see this every week at the grocery store; buy one box of cereal for $3.79, or purchase three for $3.29 each.
A restaurant could offer to add a desert to a meal for 1/2 off on the desert price. Let's say the dinner cost your customer $10.99 and a piece of cake normally costs, say, $3.99. Offer your customer if they would like a slice of cake for $2.50 with your dinner tonight.
You won't lose anything on the cake at that price, but the value of the ticket on that customer goes up by almost 23%: Sweet for you and the customer!
Route Number 3
The third way to increase your cash in hand is to persuade your your client to buy more often from you within the same time period.
When I was in the broadcast radio advertising field, maybe a client purchased 10 commercials from me in each week. I could increase my revenue if the client, instead, increased the order to 15 commercials per week. That's a very real and easy way to create additional cash flow which I did often in the radio business.
A backhanded way to accomplish this it to convince your customers to use what you sell more often thus increasing the demand curve and decreasing the time between buying event.
The More, More, More Accomplishment
Finally, there are marketing magicians who can roll two or three of these categories together to get quantum-leap type revenue gains.
Just imagine for a moment if you had more customers who bought more items in increasingly shorter time spans.
7 thoughts on “3 Ways To Increase Your Cash”
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