One of the biggest challenges of owning a business is offering your customers affordable pricing while also turning a profit. Whether you’re in the retail industry, medical field, or anywhere in between, happy customers and increased profits are the key to business success.
Here are a few ways your business can find a balance between the two:
Run and Rerun the Numbers
Great service and quality products are a large part of the customer satisfaction equation. However, if you really want to please your customers, then you need to offer competitive pricing on the goods and services you provide. This is where running the numbers comes into play.
By taking a close look at your profit margins and expenses, you can figure out exactly how much you need to earn in order to make a healthy profit. You may need to run your numbers on a periodic basis to account for fluctuations in costs, but it is well worth your while.
Once you know your exact profit for the products and services you sell, you can then decide whether or not there is any wiggle room to pass cost savings on to your customers, patients, and clients. You might be surprised how much wiggle room there is.
Offer Different Price Points
Pricing flexibility makes your business more approachable to a wider range of consumers, whether you’re running a multi-million dollar hospital or a mom and pop business in town.
As the following article looks at, if you’re wondering how to set a positive tone for cost discussions with patients and customers, then start by offering flexible price points.
If you offer a service, provide different levels of that service. A great example of this is a car wash that offers different levels of cleaning from a basic rinse all the way to complete detailed cleaning and waxing.
Although the majority of consumers will go for the most affordable option, there will be a good amount that chooses the high-end service.
You can build your profit into each price point and keep your profits up while also pleasing every type of customer.
Buy in Bulk
When you save money in the supplies department, you can pass those savings on to your happy customers.
One way to do this is by buying your business supplies in bulk. Whether it’s direct-to-the-customer products, office supplies, or anything else you purchase on a regular basis, buying in bulk usually results in deep discounts.
Not all vendors allow you to buy in bulk, so it’s important to build solid relationships with your network of vendors.
By doing so, your vendors will likely give you a buy-in-bulk option or, at the very least, they’ll reduce their markups. Both scenarios give you the opportunity to pass savings on to your customers.
Cut Back on Overhead Costs
When your overhead costs are high, you have no choice but to increase prices. This doesn’t benefit your business or your customers.
With that said, there’s always room to cut back your business’s overhead costs.
For example, you can find a more affordable vendor, reduce energy consumption at your place of business, or even switch to paperless billing.
A reduction in overhead costs saves your business money, which ultimately saves your customers, clients, and patient’s money as well.
If you’re ready to make money and satisfy your customers, then keep in mind the simple pointers above.
About the Author: Adam Groff is a freelance writer and creator of content. He writes on a variety of topics including business finance and customer satisfaction.