Revenue is the lifeblood of a business and ultimately dictates whether you find success or you go bust. The economy is in an incredibly precarious position right now. We are still battling the Covid pandemic and are continually hit with reoccurring restrictions, affecting nearly all businesses. This has led to a massive loss of jobs and an oncoming recession. It has, therefore, never been more important for businesses to try and boost their sales and overall revenue. This is particularly true of smaller companies, who are more vulnerable to economic uncertainty.
Fortunately, there are a variety of ways in which a business can attempt to boost their revenue streams and therefore improve the health of the company.
Pricing
One of the most effective ways in which to see an instant increase in revenue is by changing prices. There are obviously two different ways in which you can do this, increase prices or decrease prices.
Increasing pricing will provide more revenue per sale, and if it’s a small increase, it won’t’ necessarily be noticed by customers but could have a large effect on your bottom line. However, price increases always have the potential to alienate customers and push them into the arms of a competitor.
Decreasing prices can be effective as it can boost the number of sales that you have, so you still see an increase in revenue just using a different approach. Of course, price decreases can be very popular, but it can also backfire if customers think it’s a reflection on quality.
The tactic that you take with pricing will depend on your company and its individual circumstances. Trial and error is the best approach here, with small incremental changes and thorough analysis with each.
Products
Products and services are what drive revenue, but not all products are created equal. Take a look at your data, what is selling well and what is under-performing; this information is valuable. It allows you to identify and cut poor sellers, preventing the money lost through waste, and it also allows you to develop your bestsellers. Bestselling products should be front and centre in your shop, whether that’s a physical shop or a website. You can also use this information to create new products, building upon the success of your existing popular products.
Special Offers
Offers are a fantastic way to not only drum up new business but also incentivise existing customers to return. There are a variety of special offers that you can introduce, including discounts, sales, free delivery or even a loyalty scheme that rewards repeat purchases. Even something as small as a one-time 10% discount could make the difference between a sale and no sale. Obviously, there has to be a balance between the revenue lost through special offers and the potential revenue gained through sales. However, just like with price cuts- the initial investment often leads to greater gains in the long-term.
Marketing
Don’t underestimate the power of marketing, particularly online marketing such as email campaigns and social media. What’s so effective about digital marketing is that the return on investment can be substantial. Obviously, you can outsource campaigns or hire an in-house employee, but there’s also the opportunity for you as the business owner to implement online marketing. If you’re just setting up a Facebook account or an email subscription, this is relatively simple and requires no upfront cash. This is particularly useful for smaller businesses who may not want or need a large, costly marketing campaign.
Online marketing allows you to stand out from the pack, endear yourself with new and existing customers and also alert them of any new products or special offers.
Save
Boosting your revenue isn’t just about making more money; it’s also about saving the money you already have. Your business may be running at peak efficiency, but there’s usually something that can be cut or adapted to help save money. This could vary from staff cuts to cheaper materials or even negotiating with your landlord or utility companies in order to bring down the cost of bills. Individual savings may seem small, but they all add up to a larger overall boost in revenue.
