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# Profit GPS Case Study - Discover "Hidden" Profit From Within

Profit GPS Case Study - Discover "Hidden" Profit From Within
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### Profit GPS Case Study - Discover "Hidden" Profit From Within

1. 1. Profit GPS Discover “Hidden” Profit From Within
2. 2. Data of a service business ● 1323 customers ● Total Sales: \$2,369,759 ● Avg order size: \$1,791 ● Multiple products at different price points
3. 3. For \$997-point: 426 customers for a total revenue of \$424,700 (+/- 25% Margin of error) \$363,905 Revenue opportunity!! Only 61!!
4. 4. Revenue Opportunity ● \$100,000 - 2 Customers - \$200,000 ● \$50,000 - 4 Customers - \$200,000 ● \$10,997 - 26 Customers - \$285,900 ● \$1,997 - 190 Customers - \$379,400 ● \$997 - 426 Customers - \$363,905 ● \$1,791 - Avg Order size (+/- 25% Margin of error)
5. 5. \$1,429,205 “Hidden” Revenue Opportunity (+/- 25% Margin of error)
6. 6. 60.31% “Opportunity Factor”
7. 7. Crossing Profitable Chasm
8. 8. Profitable Chasm ● The optimum amount which your customers need to spend with you are leaving a “hidden” \$1,429,205 revenue opportunity on the table ● Profitable “chasm”: \$2,500 ● Your profit pocket is the \$50,000-\$100,000
9. 9. \$2,500 “Profitable chasm”
10. 10. \$2,500 “Profitable chasm”
11. 11. What happens when all of your customers reach the \$2500 chasm?
12. 12. New “Profitable chasm”?
13. 13. Recap ● A “hidden” \$1,429,205 revenue opportunity on the table ● A Profitable “chasm” \$2,500 ● The “hidden” profit pockets are the \$50,000-\$100,000
14. 14. Recommendation ● Improve the CLV of 1,213 existing customers whose is below the Profitable “chasm” of \$2,500 ● Architect new offers in the \$50,000-\$100,000 range

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Profit GPS Case Study - Discover "Hidden" Profit From Within michaelnguyen.me

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