How A Computer Retailer Quickly Increased Profits By Leveraging One Hidden Asset
Computer selling services usually find it a challenge to continue to sell their computers and services regularly. A business will buy your computers and then you wouldn’t hear from them in years or maybe never since computers can last for quite some time.
If you are having trouble maintaining a consistent cash flow all year round, you’re not alone. There are multiple ways to face this issue. One way is to already look at the clients you do have and to regularly offer them services that can save them money for their business in the long run.
For example, Ryan’s computer business called PC Providers sells computers and offers computer repair services to his multiple business clients. His issue was that he didn’t know how to consistently have high profits all year round. He wanted to continue to be in business for a long time, so he contacted a business strategist at Growth Advisors on Demand to see what he can do to keep his profits consistently high.
The growth advisor assigned to Ryan immediately identified the available, hidden asset customer base of 200+ that could be used to further drive his profitability without requiring an increase in operational spending. He also acknowledged Ryan’s most painful challenge of his profit margins decreasing from 25% to 16% after the holiday season.
The first step was to help Ryan realize that he can further increase his profitability and consistent cash flow by regularly communicating with his customers about helpful tips on buying computers and about special offers too good to pass up. The action step to accomplishing a steady increase was simply to email them regularly regarding upgrade offers that he can offer to them since computers and technology change all the time requiring regular upgrades.
Examples of some headlines used were “At PC Providers we will train your staff for four hours and we give you a three-year warranty, plus a 90-day Money Back Guarantee that you’ll be up and running within that time.” We also recommended that his letters also include deals that his competitors currently do not offer, such as explaining to their customers why choosing to do business with PC Providers can lower expenses of operating their business by an average of 15%!
Ryan was excited to implement our suggestions and start measuring his progress. With the suggestion of sending our regular emails to his sizeable client base and sending out special offer letters to businesses identified to most likely, need his computer services, Ryan’s profit margin shot back up from 16% to 26%! Moreover, his previous conversion rate of 10% increased to 25% after implementing the plan.
If you have a computer business, you can also experience a steady increase in profit margin by building a relationship with your customers and by being creative on how you can continue to give them guaranteed services after the initial purchase of your product.
These are just a few of many tactics that can be used to accelerate the growth of your business profits by maximizing the value of each of your existing clients.
Explore some of YOUR growth opportunities to supercharge your growth and build the business of your dreams with FREE access to our Profit Growth Matrix below.
INSTRUCTIONS ON HOW TO USE THE PROFIT GROWTH TOOL
In order to quickly calculate how we can help you increase profits, you will need to input 5 numbers in the white boxes below.
Step 1 – Under the “Current Marketing Efforts” section (left side), please input your current numbers for “Avg Number of Prospects/Lead Contacts Per Month” and “Avg Number of New Customers Gained Per Month”
Step 2 – Under the “Current Marketing Results” section (right side), please input your current numbers for “Avg Amount of Sales Revenue Per Customer” and “Avg Number of Sales Transactions Per Customer Per Year”
Step 3 – Last number you have to input is what % would you like your company to grow which is “Your Target Growth Rate”
If you get stuck or need help, please email us at email@example.com