My final email today comes from Richard Ainsworth of Holstein Park in Chicago. Richard writes…. Dear Bob, absolutely love the show. I found it totally by accident. You need to get the network to promote your show. It really is great for small businesses. A couple of weeks ago you talked about how small increments in performance make a huge increase in profits. You used it as a justification to provide fantastic service. I didn’t really understand what you meant.
Well Richard, if you make 1 sale a year to 1000 customers at $100.00 each sale, your revenue is $100,000. If you just increase the number of customers, the price per sale, and the sales per year by just 33%, your revenue increase is 235%. So 33% increase makes a 235% difference to your sales. It’s really fantastic.
Conversely, if you discount by just 33%, by the time you take into account all your costs, not just the purchase price of the item, you will actually lose money almost every single time.