How to increase profits for a one-off biz?

5 replies
Hi Warrior,

I've an offline client who is selling electronic parts. 90%+ of customers are one-off, and never returned. The margin is thin, very competitive. Besides winning at SEO, getting leads from the search engines, how would you increase his sales/profits?

Thanks.
#biz #increase #increase profits #increase sales #oneoff #profits
  • Profile picture of the author Jason Kanigan
    Reposition up the food chain...and charge higher prices for better brand quality.

    One-of-a-kind products for razor-thin margins?!

    Not in my world.

    The setup times alone for single products make up most of the cost.

    Find a different channel for your client to sell products to...for which you can set up once and make a high quantity of that product. Your client needs to get out of the game they're in, and find a new one--if they want to grow.
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  • Profile picture of the author somacorellc
    Originally Posted by rogerfung View Post

    90%+ of customers are one-off, and never returned.
    I would use email marketing first and foremost in this situation. Many companies don't reach out to new or current customers, for some reason, because they think "oh, they've already bought something!"

    Don't be that company. Start an aggressive email marketing campaign and get all those people to come back for more!

    Also do what KaniganJ suggested and raise your prices so that you can afford to email out special offers.
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  • Profile picture of the author Voasi
    Originally Posted by rogerfung View Post

    Hi Warrior,

    I've an offline client who is selling electronic parts. 90%+ of customers are one-off, and never returned. The margin is thin, very competitive. Besides winning at SEO, getting leads from the search engines, how would you increase his sales/profits?

    Thanks.
    Lots of ways to increase profits...

    1 - Offer an insurance program. Customers can pay a one-time $XX for 1 or 2 year insurance program (Best Buy is notorious at this). 75% will never use it or will forget they bought it.

    2 - Hike the prices 10% and then give 5% mail-in rebates (again, Best Buy tactic). Again, 75% won't mail it in because of the hassle of mailing something in.

    3 - Cross sell buyer data. Owner can work with a call center to cross-sell his buyers with other electronic products and complimentary products to the original product.
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  • Profile picture of the author los s
    add better products with more margins.
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  • Profile picture of the author los s
    add better products with more margins.
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