This may sound mundane, but new and improved profit streams are necessary for the success of your business. Even without tariffs, operating a business is becoming more and more expensive every day. If you do not stay ahead of the curve, you might find yourself off the road in a ditch.
I have been in business for longer than I choose to admit. I have never rested on my laurels. I have always sought business improvement at every turn and in every year. When I improve my business, I pass along much of the improved earnings to the individuals who helped me achieve the improvement. Sharing the increased revenue is necessary, but that discussion is for another day. Today we want to discuss, specifically, improving those revenue streams.
Over the years, I have consulted with more than 20,000 clients. I can tell you that each client is as different as snowflakes are different. There is no one size fits all in consulting. However, there are some simple rules you can follow:
1.) Be certain you are providing a quality service. Don’t just think it so. Make it so.
2.) Be certain you are providing the service your customers really want. It is very difficult to charge more for a service the customer really doesn’t want. E.G. Maybe a customer wants you to clean the filter and empty the skimmer basket as part of your service, but they just haven’t gotten around to asking you. If you try to charge more for a service they really do not want, you will have problems retaining this customer. I believe this is one of the biggest reasons business owners lose customers when they raise rates. You are just not giving the customer what they want and then you want more for what they don’t want. Know your customer.
3.) Never be afraid to increase your rates or charge for a service that was once a free service; E.G. if you have been including chemicals and filter service, you can charge for this service if the extra charge is approached in the appropriate manner.
Improve your business every year or lose your business. Harsh statement? Yes. The other alternative is you struggle for several years and then you lose your business.
You should be looking at every revenue stream, every year, to see if there is any room for improvement in that specific stream. It may take you a while, in the beginning, to stay focused in that direction, but once you force yourself to stay focused, it becomes as natural as breathing.
If you are concerned about losing customers, charge a few at the beginning for the new service or new rate, to see if the new shoes fit. If they do, raise the rest or charge the rest. The worst thing you can do is nothing. Doing nothing is destructive. It may feel comfortable, but it is just a slower death.
You can find more information on business improvement on millionairepoolman.com