We all have our pet ideas on how to be more profitable. For example, I believe profitability is a by-product—a result—of doing the right things in the market (branding) and within the company (peak performance). The more things done well, the more profitable your company will be. But the activities necessary to generate higher profits can be tricky to pin down. Where do we start? By getting more productivity from each employee? By aggressively slashing costs? By buying low, selling high? Yes, yes, yes.
But is there a set of points we can focus on along the way—a sort of checklist? I offer here a list of 37 ways to boost profits in marketing that will lead to an increase in higher profits. These 37 ways determine whether a market offers a business the potential to make higher margins. In order to succeed, the business will need the business strengths required in its chosen market to become a major player. This list is not meant to be exhaustive, but the ideas should give you some things to consider when determining whether a market or segment can become profitable to your company.
- Pricing Sensitivity
- Captive Customers
- Customer Concentration
- Economies of Scale
- Barriers to Entry
- Regulatory Exposure
- Ability to Sell on the Internet
- Ability to Promote off the Internet
- Ability to Handle Customer Relations off the Internet
- Ability to Buy off the Internet
- Foreign Operations
- Opportunity to Segment the Market
- Stage of the Life Cycle
- Number of Major Competitors
- Level of Technology
- Value Added (Percentage of Sales)
- Manufacturing Costs (Percentage of Sales)
- Investment Intensity (Percentage of Sales)
- Inventory (Percentage of Sales)
- Promotion Costs (Percentage of Sales)
- Social Attitudes
- Environmental Attitudes
- Raw Materials Availability
- Sales Costs (Percentage of Sales)
- Distribution Costs
- Customer Relations Costs
- Service Costs
- Demand Cyclicity
- Demand Seasonality
- Potential for Functional Substitution
- Research & Development Costs
- Gross Margins
- Growth Rate
- Size of Industry/Segment
- Need for Capital
- Aggressiveness of Competition
To keep this brief list items are not defined. Contact me at firstname.lastname@example.org for the white paper that defines each of the 37 ways to boost profits.
Alan Bagg helps manufacturers boost sales by getting more mileage from their current marketing budget.
Alan is happy to entertain more discussion via email or phone. Reach him at email@example.com or 262.633.7772. Or follow him on twitter @alanbagg. Find more information on Alan at his LinkedIn profile.