This is it...
Dear Industrial Professionals,
I want to introduce you to a unique strategy you'll find weird.
But it can amplify your sales and potentially increase your profits between 30% and 100%. I call it the "Fishbowl Discount Selling Tactic."
First, ensure we are on the same page regarding critical financial concepts.
Gross profit is the money you generate from your sales, less the direct costs of producing your goods (COGS).
Let's say you sell a sheet of metal for $500, which costs you $100 to manufacture it and another $50 to market and sell. Your gross profit, in this case, would be $350.
Net profit remains after subtracting all your business expenses - such as overhead costs, shipping, utilities, salaries, and so on - from your gross profit.
Let's say these total $175 per sheet. After subtracting that from our $350 gross profit, we're left with a net profit of $175. With a sales price of $500 and a profit of $175, we have a net margin of 35%.
Now, imagine what happens if you increase the sales value by raising the price or selling your customer an additional product or service.
The only extra cost to you would be the actual cost of the new product or service. If you sell the same sheet for $600 instead of $500, your profit margin effectively doubles.
However, raising prices isn't always feasible. Instead, consider selling an additional related item to the same customer.
Let's say you sell a metal finishing product for an additional $100, with production and delivery costs of $20.
This additional $80 is almost all net profit since the initial sale covers your overhead and expenses.
Let's explain two terms: up-selling and cross-selling. Up-selling is offering more of the same product or a higher-value product.
A good example would be selling your customer a larger quantity of metal sheets at a slightly reduced price per sheet.
Cross-selling is offering a related product or service.
For instance, if a customer buys a metal sheet, you could offer them metal finishing products or fabrication tools, thus enhancing the value of their purchase.
Now, let's get to the core of our strategy - the "Fishbowl Discount Tactic."
Start by identifying products or services that add value to your customers' purchases.
They could be your products or services, or they could be from an affiliate partner.
Here's how it works. After a customer makes a purchase, ask them if they're interested in buying anything else.
Once they decline, offer them a chance to draw a discount from your "fishbowl." The discount range from 5% to 25%, depending on your profit margin.
The trick is that all the fishbowl numbers are the maximum discount, but the customer doesn't know this.
When the customer draws their discount, congratulate them on winning the maximum value, which they can apply to purchase selected products or services with high-profit margins.
This tactic should increase your sales and profitability significantly.
Remember, strategies like these are all about testing and adjusting. Experiment with different products or services and observe the impact.
The ultimate goal is to increase your customer's purchase value, boosting your business's bottom line.
You are creating more value and a better reason to return to you, not your competitor.
Marathon running, like golf, is a game for players, not winners. That is why Callaway sells golf clubs, and Nike sells running shoes. But running is unique in that the world's best racers are on the same course, at the same time, as amateurs, who have as much chance of winning as your average weekend warrior would scoring a touchdown in the NFL. - Hunter S. Thompson