4 Ways to increase your company’s income

One day, mathematics taught us that   I = C x G

That is, the income of a company is the result of multiplying the number of clients it has (C) by the expense of each of them (G).

Based on these two historical variables, we see that without going into the size of your company or its legal form, there are 2 traditional ways of increase your company’s income.

1. Increase the number of clients.

I don’t think I have discovered anything new when I point out that the more customers, the more sales and the higher the income.

In order to increase this number of clients you can resort to advertising, or have an adequate commercial network that works towards this objective.

2. Increase the price of your product or service.

Obviously, if the number of customers remains unchanged and you raise the price, your company’s income will increase.

The problem is that you run the risk that those clients for whom the price variable is very important, stop buying, so this bet can turn against you.

It is curious, but most companies focus on the variable number of clients to increase their sales and become obsessed thinking that it is necessary to increase this number of clients so that income does the same. However, I am going to tell you about two other strategies or ways to increase your income:

3. Increase the amount of the purchase made by customers.

Have you stopped to think about the strategy followed by Mc Donalds, Telepizza or Burger King when you make an order? They will immediately tell you that for a few euros more the menu will be much larger, or that you can take a dessert or some delicious chicken wings.

Don’t ever think that the lady who looks after you has fallen for you. She is following the guidelines imposed by a clear commercial strategy that comes to say that the most difficult thing is for a customer to enter and ask for the product, but that once there you must ensure that the purchase amount is as high as possible.

4. Increase the frequency of the purchase.

Selling to a new customer costs 6 times more than selling to a new customer. However, most of the time, companies ignore their lifelong customer, the one who has proven to trust him because he has already bought before.

Why are the new products or services that we put on the market offered earlier to clients that are not, than to those who are already loyal to our companies? Although it seems a lie, it is a fact that it is there, someone who already knows us will always be more receptive to listening to us than someone who does not know us.