5.15.80: DISCIPLINE #6 INCREASING THE MARGIN PER SALE - WILLIAM EASTMAN

Today we finish Discipline #6 - Aggressive Marketing & Sales. The last 2 shows we focused on first getting our best customers to buy more often and then increase size of each purchase. Today we tackle the only thing left - buying better margin items.

This is the last step in the process of moving from a good business to a leader, a market dominator. Up to now you have revisited and improved both your market coverage and share of business. Then you sliced the market and your offer into smaller pieces. Now it is time to get aggressive in marketing & sales.

If you are going to move from the 15% to the Market Dominating 5%, it will take investing in the firm and Disciplines 4, 5, and 6 are how to pay for it.

PROFIT RADIO - "A Network of Entrepreneurs for Entrepreneurs"

INTRODUCTION
We are covering Discipline 6 in the 3 parts: Frequency of Purchases, Size of Purchases, and Margin of Purchases. 

Today's Show is Part 3 in the process:  Margin of Purchases

OBJECTIVES
One thing you need to consider and use to evaluate your readiness for this step. You have been collecting information on customer buying habits to enhance persona and combined can provide reasonably accurate data.

​This allows you to analyze the data statistically and eliminate allot of train and error and get to a winning solution faster. 

Owner/Executive Perspective

1. What is the impact on revenue and profitability for increasing the margin of purchases?
2. What are my options and when should I use what?

What You Need to Know

• Know Your Numbers
  • Recency of Purchases
  • Frequency of purchases
  • Margin of Purchases
• Statistically compare buying patterns to isolate variables you can effect
• Run several test campaigns (A/B Testing) to to determine right mix

What You Need to Do​​

1. Renegotiate Vendor / Supplier Deals
2. Increase Prices
3. No Discounts or Price Deals
4. Change Sales Comp
5. Sell Higher
6. Change the Bundles
7. Cross Sell - Up Sell​
8. Create Annuity Sales

Next Week - Discipline #6 - Part 3: Increasing the Margins of Purchases. If we have increased the frequency and size of purchases the only thing left is improve the margin. Don't miss it!

1. Follow the 5.15.80 Series all season.​
2. Get your business growth news everyday from IBGR.Network
3. JOIN the IBGR Community
4. DOWNLOAD the IBGR Growth App
5. RESEARCH anything related to Starting, growing, or Exiting a business on the IBGR Network

We are your single, one stop source for business success, period, end of story.

Make sure you leave some thoughts in the comment section below. I am interested in continuing the conversation.