Part 3 of a 5 part series
- Falling profits (before owner’s compensation).
- Falling owner’s compensation.
- Falling or stagnant sales with falling profits
- Rising expenses.
- Cost of goods sold.
- Decreased gross margin.
- Significant adverse deviations from budget.
Steps to Improve: MARKETING
- Adjust prices to maximize profits, not sales.
- Know when to discount; discount to sell but don’t discount yourself out of business.
- Re-evaluate the effectiveness of purchase and cash discounts.
- Keep tabs on your competitors’ prices.
- Make credit easy using plastic (credit cards) or direct third party finance.
- Stretch your advertising dollars.
- Direct your advertising dollars at the best sales prospects.
- Evaluate the effect of what you do.
- Increase advertising impact: copy content; image; illustrations.
- Use copy that sells. Don’t neglect the headline.
- Use sales to your advantage. Find excuses to hold sales.
- Diversify your direct sales channels and media.
- Package for prestige; add perceived value.
- Package for utility; add value – utility of package or packaging.
- Packaging is more than wrappings or containers: presentation; convenience; uniform image; labeling; hope; utility.