Boosting Revenue in Your Business
Revenue is the lifeblood that sustains a business if cash flow is its arteries. Therefore, the methods of generating revenue are constantly discussed, analysed and investigated.
During these periods of analysis, four critical strategies for revenue management and generation should be considered
INCREASING THE NUMBER OF CUSTOMERS
Do you want to attract more customers? You can do this through promotions, discounts and special offers. Bringing new and pre-existing prospects to purchase your products will increase the number of transactions possible.
INCREASING AVERAGE TRANSACTION SIZE
Upselling is a revenue generation strategy that involves enticing your customers to buy more (through a process known as upselling). When a customer purchases a product or service, you can offer them additional products or services that might be seen as a natural progression or something they might be interested in. More items a customer purchases, the more they spend and the more revenue you collect.
INCREASING THE FREQUENCY OF TRANSACTIONS PER CUSTOMER
By using this method, you can encourage customers to purchase or use your services more frequently. If the average transaction size stays the same, you should see an increase in revenue (assuming they visit your business more regularly).
RAISING YOUR PRICES
Although it may seem risky, this is one of the easiest ways to increase revenue. Assuming your volume, average transaction size, and frequency stays the same, raising your prices should bring in more payment for the same amount of effort. Raising the prices of your products/services should be carefully considered prior, as a price spike that’s deemed too high could lead to your business losing out on revenue instead.
Thank you for reading!
Should you have any queries in regards to the above please contact our office on (03) 9728 1448
The TAS Team
3/653 Mountain Highway, Bayswater VIC 3153
Dorothea Farmakis (CPA)
Dorothea, our CPA Qualified Accountant (Registered Tax Agent), has over 25 years experience within international corporate firms in Accountancy, Funds Management and Asset Management for firms such as HSBC, P&O, Lend Lease and more.
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