The small tweak that gets big results
The simple wheel. An incredible invention. Useful itself in a variety of ways and tweaked further to create other inventions like cogs, pulleys and gears.
But you don’t have to re-invent the wheel to achieve big results…
In business, we often think that for a big impact, we need to make big changes. But that’s not always true! Often, small changes can be revolutionary.
It’s a similar story when you change what you charge.
Raising your price is the quickest way to become more profitable. Yet many companies resist it thinking they need to raise prices by 20-40% and fearing a backlash from their customers.
It’s not true though. Even a tiny change in your prices can have an out-of-proportion impact on your profitability.
Let’s do the maths together…
Betty sells Motorbike Jackets at £100 each. £10 of this is profit.
If she raises her price by just 5% each sale would bring in £105
For the consumer, that’s just a tiny increase. They probably wouldn’t even notice it.
But your profits have jumped from £10 to £15 – that’s a 50% increase.
Your expenses have not increased at all, so every penny of that extra £5 is pure profit.
Now imagine you applied that across the board. A 50% jump in profits, year-on-year, wouldn’t look too bad in your year-end accounts, would it?
Now think about the changes you can make and the results you want to achieve.