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

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

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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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