costs

Four ways

There are only four ways to increase profit:

  1. Increase volume

  2. Increase price

  3. Reduce cost

  4. Change product mix

It's important to note that these strategies are not mutually exclusive, and often, businesses use a combination of these approaches to achieve sustainable profit growth. Also, other strategies and factors can influence profitability, such as marketing, branding, customer service, and innovation. Even though I think that understanding the changing market dynamics is typically the most effective way to increase profit over the long term. The effectiveness of these strategies can vary depending on the industry, market conditions, and the specific circumstances of a business. Contact me via e-mail to arrange a meeting about a more well-rounded approach that considers all aspects of your business.

What's the alternative?

c/o New York Times

Is there a correlation between expensive solutions and big effects?

I think the short answer is not necessarily.
While some expensive solutions may have a big impact, there are also instances where small, low-cost solutions can lead to significant outcomes. The relationship between cost and impact is not always straightforward, and it depends on the specific context and problem being addressed. In some cases, a simple and inexpensive solution may be the most effective, while in other cases, a complex and costly solution may be required to achieve the desired results. Ultimately, the effectiveness of a solution should be evaluated based on its ability to address the problem at hand, rather than its cost.

The value trinity

In my experience CEO’s only care about three things:
- How can you help them increase their revenue?
- How can you help them reduce their costs?
- How can you help them expand their market share?

You can sell the features and you can sell the benefits; you can sell the advantages and you can sell the gain, that’s exactly what everyone else is doing. But if you can’t align your features, benefits, advantages or gain to increasing revenue, reducing costs, or expanding market share people will shut down.