Revenue (3 of 5): Marketing to Grow - John M. Leask II CPA/ABV, CVA


Part 3 of a 5 part series

Warning Signs:

    • 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.

Back to The Business Doctor

>>Revenue (1 of 5): Sales / Profits
>>Revenue (2 of 5): Profitability
>>Revenue (3 of 5): Marketing to Grow
>>Revenue (4 of 5): Selling
>>Revenue (5 of 5): Dealing with Hard Times