When you run a business, every cent matters. This is especially true for businesses that are just starting out. Making a profit and having your accounts in the green are critical to surviving those first few years. Even businesses that have been open for a long time are subject to practices that are no longer efficient. Make sure your business isn’t losing money through any of these three methods.
Your Products Aren’t Priced Well
If you run a business with a lot of stores in its chain, it is quite possible that those stores don’t all receive the correct information about prices. Even in the hustle and bustle of opening and preparing the store for the day, miscommunication can run rampant in a brick-and-mortar store as well as online. These incorrect prices could be sending money right out of the window. For example, customers may be buying products below cost. Or the price may be too high, and customers are buying the product elsewhere. It’s critical that you have someone always checking product prices. Doing proper market research and finding the best price for your good is essential.
For those businesses that ship their products, if the address listed isn’t correct, then you face a lot of costly problems trying to amend that situation. This can happen either because the person made a mistake when inserting his or her address or because there was a software glitch. One way that you can save time and money is through verification. Businesses need to verify addresses at checkout. This is a simple method that ensures that the address the customer gave is the correct one. Shipping costs will be reduced because you won’t have to ship the product twice, and you won’t have a customer service complaint to deal with because the product was delivered on time as scheduled.
Not Utilizing Social Media
Another aspect where businesses might be losing money is the use of social media. This is practically a free place to advertise your business. You can cultivate new customers, forge customer loyalty, and receive free feedback from your customers about improvements that you can make in your business. Not utilizing social media is basically leaving a gold mine untapped.
To ensure that your business is making as much profit as it can, you should utilize and examine these three ways where you might be losing money. By streamlining and fine-tuning your sales system, your business will be running at an optimal level that ensures profit and limits waste.
For guidance in your marketing efforts, check out our free resource, 99 Marketing Techniques!