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Here's Why Profit Maximization Can Be The Best Or Worst Thing For Your Business
Profit maximization – with integrity – is the fuel for corporate growth strategies and getting the economy back on track, with employment opportunities and a higher standard of living for all. Because when you can comfortably fund business growth internally, you’re protected from the types of credit crunch issues we’ve seen in the turbulent economy of the past couple of years. And I believe that significant profits that have been well-earned, best reflect the value that the company is delivering to its customers, hence its competitive advantage and market leadership position. Profit Maximization Must Be Based on Integrity More often than not, I’ve seen profit maximization – with integrity - ignored in strategic marketing plans, and thus done the wrong way by mid-level managers and on the front lines. Many of the most profitable companies in the world are the ones we look up to. Many companies on the "Top 100 lists" that are regularly printed, actually have high revenues but lose money... reflecting a lack of value to customers. focusing on how to increase sales at any cost, even if those sales are not in the best interests of the customer or the company. • price gouging with trusting customers • excessive discounting to try to profit from market penetration, • downsizing employees to cut costs • travel and training cost cutting strategies in business that harm future results They’re all tactics that can temporarily increase profits, but they have nothing to do with creating the kinds of value for customers that drives sustainable profit maximization with integrity I’ve seen these questionable revenue management strategies many times as I’ve helped companies get back on track and recover from abusing their customers by: • Over-promising and under-delivering • Taking advantage of a trusting business relationship • Acting only in the short-term interests of the company and not in the best interests of the customer. Profit Maximization With Integrity Occurs Naturally When Value Is Created For a Customer In your “consumer life”, do you have a favorite store, restaurant, or service provider that you always go to, because... • they usually have what you want • they’re helpful if they don’t • they create a great experience while you’re transacting business • you know they’ll be there for you if there are any problems? Are you happy to pay prices above rock-bottom because of the value you get? Do you recommend them to others you know? Do you always go to them first, even though you might get discount coupons from competitors? That same type of value-creation process is what’s needed by businesses who believe in profit maximization with integrity. 5 Straightforward Next Steps to Profit Maximization With Integrity 1. Talk with your customers, not at them. 2. Find out what they love about you and give them more of it. 3. Find out what drives them crazy and fix it for good. 4. Find out what business challenges they’re still wrestling with, and see if you can develop a new product or service, or even tweak something you’re already doing, to provide a better solution. 5. Be a helpful resource and recommend other solutions, even if they’re not your own. Finding new ways to deliver value to customers and earning superior profits using strategic pricing to capture that value on the bottom line, is a hallmark of some of our greatest corporations, who earn profits in excess of $300,000 per employee. How does your industry rate? How do YOU rate? The first step in profit maximization with integrity is realizing what is possible. If you haven’t yet picked up your copy of the Benchmark Revealed Special Report, which documents 5 years of profitability data across 72 industry categories, get yours now. Take a look at how you’re doing compared to your industry... and compared to some of the most profitable companies in the world. Set a new target, and develop a customer-value-based Profit Maximization plan to achieve it with integrity. Article Directory: http://www.articledashboard.com Business Leaders, set & achieve higher profitability targets quickly & easily with FREE Customized Profitability Analysis + FREE 53 page Benchmarking Report, at www.profitmaximizationsystem.com. Anne C. Graham is a Profitability & Growth Expert, Fortune 500 Insider, & Author of The Profitability Maximization Breakthrough System™, which shows motivated business leaders exactly how to achieve safe, sustainable profit increases of 243% - 415% |
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