• Home
  • Enterprise
    • SMEs
    • Entrepreneurship
  • Money
    • Banking & Insurance
    • Crytpo & Blockchain
    • Fintech
    • Investing
    • Loans & Financing
    • Personal Finance
  • Events
  • Niusline TV
  • Resources
Advertisement
ADVERTISEMENT
  • Home
  • Enterprise
    • Entrepreneurship
    • SMEs
  • Money
    • Banking & Insurance
    • Fintech
    • Investing
    • Loans & Financing
    • Taxes
  • Events
  • Niusline TV
  • Resources
No Result
View All Result
  • Home
  • Enterprise
    • Entrepreneurship
    • SMEs
  • Money
    • Banking & Insurance
    • Fintech
    • Investing
    • Loans & Financing
    • Taxes
  • Events
  • Niusline TV
  • Resources
No Result
View All Result
No Result
View All Result
Home Enterprise Entrepreneurship

Simple tips to increase your business’ profit margin

MYNIUSLINE by MYNIUSLINE
September 22, 2021
in Entrepreneurship
0 0
0
Simple tips to increase your business’ profit margin
896
SHARES
7.5k
VIEWS
Share on FacebookShare on TwitterShare On Whatsapp

Most Underrated Methods for Increasing Profit Margins in Business 

I know Mr. Rufus as a successful business owner who runs a chain of hardware shops within my vicinity and as a plumber, I cannot escape buying my supplies from him. The pandemic really messed up our businesses but Mr. Rufus was still strong in business. Is it because he has run the business for 15 years and knows how to manoeuvre? Not only is he successful, but also popular and gives advice on different aspects of business. Increasing profit margin is what most businesses would like to hear but to my surprise, Mr. Rufus never wants to share the secret behind it. Therefore, I decided to find it out by myself. Many companies in Kenya do not last till the end of the financial year due to low-profit margins. Here are the secrets of increasing profits margins used to beat all odds.

  1. Enquiring Referrals from Clients

One can request their current or former clients to refer them to their friends and relatives who need similar products and services. If the client enjoys the quality services, they can refer one to the next potential client. Referrals are a goldmine to a business for one can acquire a long-term opportunity to serve multiple clients.

  • Provide aftersales services

One can increase the volume of goods purchased by a customer and strategize this by adding together services and products into packages. For instance, if a customer buys iron sheets, nails, and other building materials in bulk from hardware. A business owner can charge a reasonable delivery fee to their premises or sell with an inclusive delivery fee.

  • Cutting Down Unnecessary Expenses

In a business, the owner should cut down on expenses in every way possible. In a financial year, if one cuts down unnecessary expenses, the profit margin can increase drastically. On the other hand, one should avoid purchasing things the business does not need. On the other hand, buying things that do not add value to the enterprise should be avoided.

  • Find out why people are not buying from you but other sellers

Is there another competitor that is doing better? How can you make sure that you cut a piece beyond your competitor? Gather all vital information that may lead you to better opportunities.

  • Follow Up with Undecided Prospects

There are times when a client requires to buy goods in bulk and requires a quotation. Once the client takes too long to respond or gives feedback or getting back to you, a well-planned follow-up can result in an incredible deal.

  • Ensure all Existing Customers are Aware of all Services

Customers should be enlightened about all services offered in a business. For instance, in hardware, one can add roofing services to clients who buy iron sheets; on the other hand, building services for those who purchase building materials. It is easier for an existing customer to pay for additional services than getting a new customer to pay for extra services. Always talk about another kind of service that the business offers.

In conclusion, managing a business is not a walk in the park. It requires dedication, discipline, and strategy. Profit margins in business do not add up quickly if the right plans are not stipulated. Business owners should follow the methods elaborated above for them to add more profits to their businesses. Money connects between the lines.

Previous Post

What does it take for a small business to grow?

Next Post

How businesses are communicating during the pandemic

MYNIUSLINE

MYNIUSLINE

Next Post
How businesses are communicating during the pandemic

How businesses are communicating during the pandemic

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Myniusline

© 2021 Mynisuline

Quick Links

  • Facebook
  • Twitter
  • Instagram

Follow Us

No Result
View All Result
  • Home
  • Enterprise
    • SMEs
    • Entrepreneurship
  • Money
    • Banking & Insurance
    • Crytpo & Blockchain
    • Fintech
    • Investing
    • Loans & Financing
    • Personal Finance
  • Events
  • Niusline TV
  • Resources

© 2021 Mynisuline

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In