Increasing Profitability

2. Increasing Turnover

2.1 Focus on a niche market. (See Planning your marketing.)

• Understand this market.
• Segment your target market, so you can fine-tune what you offer.

2.2 Invest resources in increasing sales volume.

• Use advertising and other promotional techniques, such as seminars and exhibitions. (See Advertising strategy and Exhibitions.)
• Actively sell. Do not just take orders. (See Selling technique and Negotiating a sale.)
• Retain existing customers. (See Building customer loyalty.)
• If appropriate, extend your product range (but see 5.3).

2.3 Maximise the value of your sales.

• Consider moving upmarket and providing a premium product and service. Add features to products if the perceived value to the user is greater than the cost to you.
• Charge a full price and get value from the extras you provide. (See Pricing.)
• Keep your product or service up to date.If possible, make sure it stays ahead of the competition. (See Innovation.)
• Compare price and quality with a competing product.

2.4 Focus your efforts on your most profitable customers. Target customers who:

• Place large or frequent orders.
• Pay the full price, on time.
• Are low maintenance.