5 These Strategies To Increase Your Business Profit

Are you currently confused about how to increase your business profit? Or is there any of you who has a hobby of giving crazy discounts to increase turnover? Even if you use discounts, your profit will not necessarily increase. Turnover may increase due to discounts, but profit is not necessarily.

There are actually a number of other ways you can try to increase your business profit besides crazy discounts. Among them:

1) COST REDUCTION

Cost reduction means cost reduction. Each product must have production costs behind it. Ranging from raw material prices, employee salaries, machine purchases and maintenance, marketing costs, distribution costs, research, and much more.

If you want to do Cost Reduction, you must reevaluate your business. Which sector can the expenditure be saved or reduced so that your business is not wasteful and you can get a bigger profit.

2) PRICE INCREASE

Price Increase is the easiest, but high-risk option. We recommend using Price Increase after a certain discount time.

For example: You are in a clothes business and every month you issue a new collection. Every month you can provide discount frills for your new collection. When you release the new collection again next month, you can raise the price of the old clothes collection. So that the customer will not decrease in number because there are still discount programs, but you can still get a profit increase from the sale of old collections.

3) NEW MARKET EXPANSION

You can use this method to increase your business profit. You can open a new market niche (new niche market) to increase your business profit.

For example, when you are in the business of casual clothes. From this casual clothing business you can get a profit of up to Rp. 20 million per month. If you want to get more profit, you can issue batik clothing product variants for sale in the niche market of batik fans.

4) MANY USE FREQUENCY

This trick is usually used by large companies engaged in food. For example companies that produce canned condensed milk. Condensed milk can be stored in plastic bottles or sachets. But why until now canned containers still be used? Because if you use canned containers, you want the consumer to open the container using a knife. If using a knife, the cans will open wide and milk will come out in large quantities. As a result, condensed milk quickly runs out so people will immediately buy back.

Likewise with fast food restaurants like McD or KFC. They deliberately issued several drinks or ice cream products at a low price of under Rp. 15,000. And they also often install air conditioners with very cold temperatures.

They intentionally do this so that visitors feel cool and hungry quickly. So inevitably they will buy food again and again even though there is an intention to hang out and buy drinks.

5) EXPEND VARIETY OF PRODUCTS WITH MORE ECONOMIC PACKAGING

This trick is also often used by companies producing food, soap, cosmetics, or drinks. In the past, condensed milk was sold in canned form. Now they also sell milk in the form of sachets. Likewise with shampoo. In the past shampoo was sold in bottles. Today we can easily find shampoos sold in sachets.

In fact, if you think about it, actually the packaging in the form of sachets is more extravagant than in a bottle or canned form. But consumers will not feel the price is expensive, because they buy in small size so the price also looks small.

But actually the company also gets more profit. More and more goods sold, profits also increased.