For many years researching and listening to the many businesses in my life that have structured themselves around a customer have succeeded in making a profit in a business, profit was only gained as the business developed a customer with a need and the business providing that need. As we move closer to a new year in business, we can start to see things changing in businesses. The new changes developing are not the need of the customer for most businesses, but rather the need of the business owner to scale their business, this scale comes at a very valuable and risky price. Most businesses have had profit and loss numbers almost equal, meaning the company is only skating buy in the industry and without help in the right direction; they are heading for closure.
The new business strategy that owners are trying to influence is creating high profit margins by raising general admission prices or even labor rates in the automotive industry, not only are we paying more at home for all of our other needs due to inflation but the business owners are feeling the same price crunch in their pockets. Not only does a customer pay more for a part or labor, but now they’re becoming more in debt due to all the high costs. Each year these primary costs of living seem to be increasing at alarming rates, how are the next generations going to be able to survive?
The 3 S’s affects whether a business can stay planted in this economy and survive, businesses must (sustain and gain customers) in this new economy. What is sustain in business? Sustain is how we hold the customers hand through every transaction to completion. This builds trust between the company and customer, and allows the customer to complete the next step for us, which is gaining new customers through the customer interactions between friends and co-workers.
Sustainable advertising comes at a high cost, as we all know in business, if there is no advertising there is no business. As we dive into what levels of advertising are sustainable, we must first look at the many ways of advertising first. Most of our efforts in the beginning were triggered by radio and paper, now there are so many more avenues of advertising to choose from. Every year someone has developed a new way to tap into the market, advertising in a way many never thought possible. The idea around advertising is to capture your customers attention, maybe by reading more into a storyline about the company and what products they offer, can capture a more sensitive side of a customer and compel them to make a purchase.
The sustainable profit is only gained by the other 2 S’s in any business, profitability is a numbers game, the more you are aware of your numbers and how to use them to benefit your business the more profit you and your company will make. Most production employees don’t understand numbers in a business and would rather not hear about numbers that they cannot relate to, this concept should be held and discussed only with management employees. If a production employee was to hear that numbers are very high and the company is making an excellent profit, but his production line is at a crawl, these repeated remarks about numbers is only going to change your production lines moral and cause problems later.
So from a business owner to business owner, keep your business numbers to yourself and upper management to keep morale high.
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