Launching Your Profits


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Launching Your Profits

  1. 1. Launch your Bottom Line<br />How to leverage your effort and launch your Nett Profit!<br />
  2. 2. The Next 25 minutes… <br /><ul><li>Explain the Key Leverage Calculator
  3. 3. Demonstrate the power of leverage
  4. 4. Do a quick reality check of your business
  5. 5. There is a prize to be won.
  6. 6. Finish up with a couple of quick strategies for you to take away. </li></li></ul><li>Key Leverage Calculator<br /> <br />Number of Enquiries<br />x<br />Conversion Rate<br />=<br />Number of Sales<br />x<br />Average $ Sales<br />=<br />Turnover<br />X<br />Frequency (Including referrals)<br />=<br />Annual Turnover<br />X<br />Nett Profit Margin<br />=<br />Money in you back pocket!<br />
  7. 7. Know Your Critical Numbers<br />Number of Enquires <br />Conversion Rate<br />Number of Sales<br />Average $ Sale<br />Frequency of Purchase <br />Nett Profit Margin<br />
  8. 8. Phone, Email, Walk-in Enquires or Referrals<br />It is critical that you keep an accurate record. <br />Keep a tally or a tracking sheet. <br />If you would like a free copy of a tracking sheet, please write that on the feedback form<br />Number of Enquires <br />
  9. 9. Conversion Rate (%)<br />What is it? <br /> The percentage of enquiries that you convert into SALES<br />How do you calculate it?<br /> Number of Sales/ Number of Enquires x100<br />For Example:<br /> 30 Sales (month)/ 100 Enquiries x100 = 30%<br />
  10. 10. Number of Sales <br />Number of Enquires <br />x <br />Conversion Rate<br />=<br />Number of Sales (Monthly) <br />
  11. 11. Average Dollar Sale <br />“How much each customer spends per transaction”<br />How to calculate yours?<br />Turnover/ Number of Sales = Average $ Sale<br />For Example:<br />$12,000 Turnover / 30 Sales = $400 Avg $ Sale<br />
  12. 12. Frequency of Transactions <br />How often do your customers purchase from you on an annual basis?<br />(You can include referrals in this equation.)<br />
  13. 13. Nett Profit Margin <br />It is the percentage of profit left over after you take out ALL of your expenses. <br />Nett Profit/ Turnover x100 = Nett Profit Margin<br />If you don’t know your Nett Profit Margin… Ask your bookkeeper… <br />
  14. 14. Key Leverage Calculator at work<br />Example One:<br />100 Enquires<br />x<br />30% Conversion rate<br />=<br />30 Sales per month<br />x<br />$400 Average Sale<br />=<br />$12,000 Turnover<br />x<br />1 Purchases Per year<br />=<br />$144,000 Annual T/O<br />x<br />10% Nett Profit Margin<br />=<br />$14,400 Nett Profit<br />Example Two: (10%)<br />110 Enquires<br />x<br />33% Conversion rate<br />=<br />36 Sales per month<br />x<br />$440 Average Sale<br />=<br />$15,840 Turnover<br />x<br />1.1 Purchases Per year<br />=<br />$209,088 Annual T/O<br />x<br />11% Nett Profit Margin<br />=<br />$22,999 Nett Profit<br />$8599 Increase in Nett Profit<br />Or a 59% Increase<br />
  15. 15. Reality Check of your business<br />Complete the questionnaire on page two<br />Mark a vertical line under the box that best suits your business<br />If you don’t understand what a certain point is, mark it as a maybe…<br />Then Tally how many ‘YES’ and ‘NO’ that you have.<br />2 Minutes to Complete <br />
  16. 16. And the Winner Is…<br />
  17. 17. Parthenon Theory <br />The more pillars = the more stable your structure<br />
  18. 18. Increase Enquiries – Strategic Partnership <br />Make a list of business with the same AAA target market<br />Create an offer that has a high perceived value- and low fiscal cost to you.<br />Connect with the potential partner<br />Set a launch date<br />Support the partner-Don’t Set & Forget<br />
  19. 19. Increase Your Conversion Rate: What’s your Guarantee?<br />Intention is to reverse the risk <br />What are the common fears or concerns your customers have about your industry?<br />What’s the impact if you don’t deliver?<br />It needs to be communicated clearly.<br />
  20. 20. Increase Average $ Sale: Cross Sell and Up-Sell Strategies<br />What products can you bundle together?<br />Suggestive selling – “Would you like fries with that?” & “Fishpond”<br />Offer a special deal for customers that spend over ‘X’ price.<br />
  21. 21. Increase Frequency of Purchases: Client Retention Strategy <br />This does not mean bug them every week with offers!<br />Post a thank you gift to customers after they have purchased (Could be a card)<br />Connect via social media- and engage with them.<br />Give them information that THEY would consider valuable – FOR FREE! (Reciprocity) This could be via a newsletter or social media. <br />
  22. 22. Increase Nett Profit Margin:Complete an Expense Audit.<br />Start with Utilities<br />Hours Billed versus Billable Hours<br />Review Wages<br />Review Wastage<br />
  23. 23. Thank you for granting me your Listening!<br />My gift to you… <br />“A sixty minute one-on-one consultation”<br />Valued at $197<br />Absolutely FREE <br />Only if you are committed to implementing strategies (Tick the box on the feedback form)<br />Please take 60 seconds to complete all of the questions on the feedback form.<br />