The simplest ways to increase profits are to maintain tight controls over company budgets and to perform extensive market research. Your business might be able to boost profits while moving low-cost products by encouraging shoppers to buy complementary goods. It also is possible to increase profits by using clever marketing methods that do not significantly increase expenses.
The biggest drains on your profits might come from bloated budgets and expense accounts. A review of your corporate budget might show that some departments and retail outlets are not performing well. Your production staff might be able to suggest more efficient ways to produce and deliver products that can reduce costs. You also might look at your entire family of products to find goods that are expensive to create but do not sell well. Thrifty approaches to company expenses will allow you to keep more of your revenues as profit.
Another way to increase profits is to conduct market research before releasing a new product or providing a new service. Your staff can use store walks and Internet reviews of competing companies to find out pricing information. This review of the current market allows you to set minimum and maximum prices for comparable products and services. You can use these parameters to set a fair price for a new product or service that can lead to increased profits. Market research also can inform your choice of accessories and services to increase consumer interest.
You should look at leading companies in major industries to learn how to use accessory sales and packaging to increase profits. Restaurants allow diners to increase drink and dish sizes for premium prices. The auto industry offers upgrades on tires, sound systems and engine types through its dealerships. Electronics retailers increase their profits by selling warranties and service packages for their products. You can package additional accessories and services with various products in your search for more profits.
Your efforts to increase profits might rest with inexpensive and creative methods of marketing your products. You can assign a staff member to create profiles on social networking websites where product releases, public events and sales will be announced. Street teams that are run by interns and volunteers can promote your products at very little expense. Email coupons and referral bonuses spread quickly to prospective customers without the costs of mailers. Incorporating creative marketing into your sales and product development plans can attract new customers.