November 19, 2013 at 8:42 PM
Strategies for Increasing Sales and Profit
The key to increasing sales is to provide products and services that customers want. Ask yourself this question, “Who holds the power, you or your customer?”
Research shows that customers are willing to pay higher prices for products and services that best satisfy their preferences.
Usually their preferred choice has one or two major points of difference to other products and services in the market place.
The trick is to make changes to your products and services so that they perfectly align with the preferences of your customers.
Of course, any changes need to be of the highest quality.
A client of mine conducted market research among people who are involved in any type of fitness or sporting activity.
His focus was on the comfort and performance aspects of sportswear.
After talking to a number of potential customers, the one thing he found was that people would be willing to pay more for sports clothing that improved the outcome of their current exercise programme.
After concentrating on designing compression sportswear that, according to research, enhances an athlete’s performance, he went on to test his new designs with potential customers and found that they loved his new sportswear line.
His products provide a major point of difference to standard sportswear and have catapulted his business sales – all of which are done on line via his Shopify website.
All order processing, warehousing and delivery services are performed by local New Zealand companies which helps create employment.
So the idea, according to research, is to shift the balance of power from the customer to yourself by giving them a strong reason for purchasing your products and services over your competitors’ offering.
Identify Customer Benefits
When describing products or services, state the design feature that leads to the design attribute that provides the customer benefit to create a clear, logical link between good design and what the customer will receive.
“This sportswear garment has been designed and manufactured using the latest in compression technology so that the muscles perform better leading to enhanced physical performance”.
By Aayden Clarke, Director and Co-founder with Dane Shelford
We started from a drawing on a napkin. Now we’re shipping our garments worldwide.
PlusSIX4 have developed compression clothing with cutting-edge technology, functional comfort and unique designs that represent the high calibre and proud traditions of New Zealand sport.
Each PlusSIX4 compression garment has been designed and tested by elite New Zealand sports people.
Cased in the Hawke's Bay, the PlusSIX4 team live by a culture that encourages everyone to enjoy life, work hard and then reap the rewards.
We worked out our business plan ourselves at first back in 2011 when we started and we have reached a crossroads this year where we were growing fast and had to make sure we were considering everything and heading in the right direction.
After meeting with Te Puni Kokiri, Dane and I were referred up to Tauranga to meet Dean Dalton and we had two very productive days!
We had very solid foundations in terms of marketing strategies, but we focused on refining them further, analysing our cost of sales, cash flow and what it takes to remain financially viable.
It was really enlightening to learn about the DaltonPlan® Business Benchmarks and very comforting to find out we're meeting the relevant benchmark.
The business planning sessions helped us to cope with a fast growing demand while achieving good profitability. We have since enhanced some of our systems including picking and packing, packaging and delivery.
We have found the operations flow charts very useful.
We're using them in a lot of areas including customer interaction.
We’re even teaching our main distribution and warehousing supplier as well. It helps to maximise efficiency and ensure a consistent quality of service.
The DaltonPlan® business plan model has helped us appreciate the real-world impact of what we thought were simple details.
It highlighted areas where we need to push forward and areas where we need to re-organise.
It also has given us the tools to gain a better control of our business. The support from Dean has been really good and he made himself available for us to ask questions or clear things up.
We're going through a very exciting time and we're very proud of the products we've created.
Our profit has already increased as a result of the business planning and we're constantly adapting the business to the growing demand. We're definitely strengthening our position in the sports clothing industry.
This small New Zealand company is surely taking off!