30 Jan Four factors that can lead you to close on a higher margin
When you’re a business owner, you have so many things to worry about, including where every penny goes, and you have to think about your sales margin. This is the amount of profit you make on the sale of an item or service that you offer. As a business owner, your goal should be to operate on a higher margin because it’s about working smarter, not harder. It’s important to track your margin, that way you see where you could use some improvement. There are four factors to take into consideration in order to close on a higher margin.
Quality and execution
One of the things that many small business owners often share in common is that they are passionate about their business. This directly affects the way you present yourself and affects the quality of your products or services that you offer. Your products and services are a reflection of what the business represents, which is why you should always aim to give the very best quality of your products and present yourself as the expert in your field, whether you are selling services or products. It’s all about the quality and how you portray your business.
Timing
Business owners think about timing when it comes to big holiday sales, but timing can also be about fulfilling a demand at the perfect time. This is why it’s important to always be on top of people’s radar. For example, at the beginning of February, many car dealers know that people will rush into doing their taxes to get a new or used car. People are already thinking of getting a car in December or January, but they don’t have their tax refund yet. This is why car dealers begin to really push car sales towards the end of January because they know that by February people will have money to spend. When they do, they’ll know exactly where to go because your business has already done the work. This perfect timing can contribute to your business closing on a higher margin.
Online reputation
We always see companies on Google and other sites that don’t have a claimed business page. Putting your business online is something that shouldn’t wait. When people pass by a local business, many times before entering, they check their cellphones and check photos and reviews online. If you don’t have your business claimed or if you haven’t set up your website or have any type of online presence, this can directly affect your business. Make sure you keep track of what people are saying. People’s opinion of your business matters, especially when there are so many sources of reviews. This is also another way to connect to the customer because you are getting direct feedback from the people that purchase your services. In turn, this adds more value to your business. A 5-star review will yield new and returning customers, negative reviews will not.
Brand equity and recognition
When you have good brand equity, you have a recognizable brand and loyal customers. People recognize that you are the best at what you do, so in turn, they purchase your products and refer you to more business because you’re on top of their radar. When you combine awareness, attributes, quality, and loyalty to your brand, you have good brand equity. This is something that you have to work towards every day. It’s not something that happens overnight, but it’s something that can eventually lead to good business.
Keeping track of these things can lead to having a sustainable and successful business. It’s important to always be working in each of these areas. This can help you have constant business and it can help your brand grow everyday, plus when you’re closing on a higher margin, you have less to worry about, so keep working on it everyday.
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