La cost reduction is the most easily applicable method since it does not involve work on the part of salespeople and marketers. Its main challenge is the impact it can have on Productivity. Improving the number of sales can mean recruiting new employees, which can lead to a decrease in commercial margin in the short term. The following examples take these factors into account with an emphasis on short-term and long-term profits.
The two biggest expenses a business incurs are salaries and the tools used to prospect, collaborate, and communicate internally as externally.The first method to drastically reduce costs is to move to the cloud as soon as possible. Even if not all companies have activities adapted for the cloud, some services will necessarily be adapted for the cloud and it is a very good way to reduce traditional expenses (office automation, software, computer services, fax machines, etc.) .It is possible for some businesses to operate completely with the cloud, using virtual assistants and automation software.
If your business model is well determined and operates on a small scale, it is possible toincrease margins by operating on a larger scale. All you need to do is recruit new salespeople and accelerate your marketing channels so that your message reaches a greater number of prospects and that you have the people in place to manage the new volume of sales. This is how you will be able to increase your commercial margin over the long term. Attention, this strategy should only be implemented if your market tells you that you are able to increase your market share.An expansion can very quickly turn against you and lead to debt, make sure you can reach your goals within a time.Accelerating your marketing channels can be done in several ways through inbound marketing andOutbound marketing at its beginnings to multiply opportunities.
No business dreams of Fighting over prices. By basing your promotion on the benefits of your service or product, you can be sure that your competitors won't have the same arguments. Your most loyal customers will continue to come back and Recommend your business to others if you serve their needs better than your competitors. Many customers are more concerned with the quality of services (or products) than with the price. If your target market includes such quality-conscious customers, thenIncrease in your price will not disturb them, so you can increase your commercial margin Of course.The key to Raise prices is to add value at the same time. To be able to raise prices, you need to justify a value proposition in connection with what the market offers for such a price.Other than the monetary aspect, you can justify changing your price based on how what you are offering benefits the customer to save time, a reduced amount of effort and satisfaction.Finally, you can increase your commercial margin by improving the quality of your offers.