Last month, I shared with you how to make $35,000 in sales a year and you can read how to make $75,000 in sales a year too now. I created this series solely because I know so many small business owners who are overwhelmed by the numbers. Which is truly understandable. Running the numbers and hitting the numbers can cause extra amount of stress when trying to achieve your dreams.
Breaking Down The Numbers
So, as normal let me break down the numbers for making $50,000 in sales
Yearly = $50,000
Quarterly 1 = $12,500
Quarterly 2 = $12,500
Quarterly 3 = $12,500
Quarterly 4 = $12,500
Monthly = $4,166
Weekly = $961
Daily = $136
Now, you have the numbers in front of you. Its important to note if you can make $35,000 you can make $50,000 in sales. You want to know something about the difference between the two? 42% difference is what it takes to make the $50,000 a year verse only making $35,000 a year. That might seem huge but if you run the numbers how we are about to it won’t be.
One of the scariest things and the riskiest thing I did in business was raising my prices from $185 an hour to $375 an hour. That is a 102% overall increase in pricing and my company bottom line. I knew my time was worth more than I was charging. It still is but this is my rate for personal one on one coaching. When it comes to group coaching the rate is $185 because I am working with 10 or more women/men at a time. If you have been in business longer than a year and you’re not hitting the mark raising the prices need to happen.
How To Increasing Pricing
You do not need to increasing pricing drastically like mine but you can do something similar. Personally, I suggest to those who own service based business to increasing pricing by 15% to 30% across the board. Showcasing your expertise and letting your audience know your skill level helps. If you have taken classes and such let me know on your website. If you are worth the money charge it. One of the best parts of increasing my pricing was all my clients resigned with me. If you’re wanting to ease your clients into your new pricing model give them a grandfather contract good for 90 days at the their current rate and then after the reminder of their 6 month or year contract is at your new rate.
For product based companies if you’re providing your customers quality product instead of barely making profit by doing a 2x or 3x mark up time to do a 5x mark up. In addition, you need to be increasing the amount you order from wholesalers. That is the main issue with many small boutique owners they are only ordering small numbers costing them more money. You need to invest the money into your brand. Utilize your yearly project tracker to know exactly when you are releasing products.
Elevate Your Audience To Loyalist
Too many times people just have lurkers in their audience and not shoppers who are supporting financially. One of the greatest things about a good portion of my social media followers is they are supporting financially monthly. When I launch a new product they are buying it. Thats another point make sure you’re adding new merchandise to your company monthly. Yes, service based companies you can have “products” for your company. I provide ideas here and read Passive Income ebook I created.
Something, I noticed most big or small companies do is focus on bring in new customers not rewarding their existing who are their key people to be targeting. If someone has already given you money once they are proven to give it to you again verse working 10 times harder to attract a new customer. Read how to leverage your existing customers to bring you new customers.
Increasing your pricing across the board and leveraging your existing paying customers is the two ways to increase your companies bottom line this year in your small business.