Reasons for Low Profit
So, we begin to determine the causes of low profits. The first of them is subjective advertising, which is done without relying on the market and needs, but based on the considerations of the specialist who is involved in it. He decides what the advertisement should be. Market and needs analysis, application of technologies – are not expected. In fact, the specialist makes an advertisement for himself, namely himself, having in mind as the recipient of the advertising message.
He considers his psychological portrait and his needs as a base and focuses on them. Many do not react to such advertising or even react negatively. As a result, there are no sales, and the reputation is spoiled, which further exacerbates the situation. Advertising itself is the activation of implemented ideas. Continue reading
How to beat competitors guaranteed
Trees try to grow above the rest, because this allows them to get the most out of the sun. Low trees sometimes get nothing at all. If a company wants to have maximum income, it needs to be a market leader. She must be the first in the eyes of the client, so that he chose her. This is the only way to get the most money. Someone who gets second or third can get a little money, but the farther from the leader, the less money.
The most recent companies get only minus. Until the turn comes to them, the customers no longer have money left, because they give them to the leaders. This is how the world works, it’s impossible to change it. Some try to circumvent the rules, try to deal with the established order. Continue reading
Customer is the basis of business
Keeping customers is profitable. On the one hand, it’s 10 times cheaper than creating new ones, and on the other hand, you can retain a dozen customers for the amount that you need to spend on creating one client. This means that if you manage customers, and not create them to replace the departed, you can free up money for something else. If you know how to retain customers, then you do not need to search for new customers.
For example, money can go to purchase new equipment or to finance a staff motivation system, which will positively affect the overall level of competitiveness of both the business and its products or services. Continue reading