The Profit Optimization Formula Is No Secret – It Is Just Largely Ignored:
The companies most profitable, using profit before tax as a percentage of revenue as the measurement, are those the provide the most value to their customers.
Consider Google: Google just reported a growth in profits exceeding 30% during an economic period many describe as tumultuous. Nearly all of this profit comes from their Adwords product – targeted advertising. Why is Adwords successful? Because Google’s clients see a positive return on investment. A positive return on investment is value.
Now Consider Yahoo – no longer today’s idol in terms of business profit performance. Nothing is forever. In every instance, where there is a business that is very profitable, regardless of it’s size, it is providing value to their customers better than their competitors that is key. Remember that value is always defined by the customer. So if your goal is to build very profitable revenue then you must continually focus on the value your customer wants and over deliver.
In summary – the higher the value delivered, the higher the profits. Your entire business should be focused on how to deliver more value.
This is why the first step of the marketing module that is part of my build business profits consulting process addresses how a company is taking care of their current customers. The most valuable customer is the one you already have. When that program is in place then you begin focusing on growth.
Sending all my readers the energy of wellness, peace and abundance
The Profit Expert
Steve is the President of International Business Consulting Resources. His firm specializes in guiding companies to rapid increases in revenue and profits with a sustainable growth rate. Don’t miss my FREE Report: How To Make More Money With Your Business Now and Long Term I am building my practice and welcome new client inquiries. Call me for a fee consultation at 727-587-7871
This report may be freely distributed without restrictions with the original content including this resource box remaining unchanged. Author: Steve Pohlit, Business Consulting Services, Executive Coaching, please visit www.stevepohlit.com
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