| Why Discount Your Services? To Create More Profits |
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Maintaining a sustainable profit margin in a down economy is the focus of every business in this buyers market. Through incentives, coupons and promotions you keep your existing customer base and new bring customers through your door.
You have certain fixed expenses that no matter what is happening with the economy must be paid - rent, electricity, insurance... Whether you have 10 people or 100 people come through your store a day - you have to pay to keep the lights on. So it stands to reason, that any transaction that creates profit (revenue beyond fixed costs + variable costs) is good business during a challenging economic environment. Maintaining a sustainable profit margin in a down economy is the focus of every business in this buyers market. Through incentives, coupons and promotions you keep your existing customer base and new bring customers through your door. Why discount your services?...to create more profits. For example: if a restaurant with an average bill of $30 has 6 empty tables a day - that is over $50,000 is lost revenue a year. But if they are able to fill just 3 more tables a day through online coupons they now have an additional $20,000 in revenue. They are already paying for rent, staff and most of the food. 85% of something is still better than 100% of nothing. Turn one time shoppers into regular customers, turn a once a month customer into a twice a month customer. Consumers are looking to spend their money locally. Did you have your best coupons available for shoppers to print? Include "How-to" articles or hints and tips on related subjects. Try a reader's poll. People love to give their opinion, and you can publish the results in your next newsletter. Drive traffic to your website by entering teaser text for the article with a link to your website for readers to view the full text. |
