Are you looking to set up a shop next year?
This is a hard business model to operate as more shops move online or use warehouses as their base of operation. Don’t be discouraged, though! You have the opportunity to sell a good product or to showcase a service that cannot be found online, and with a bit of strategy, you can increase your profits in no time.
It is more than just having a great product or a service like running a hair salon, though and here, you will be walked through actionable strategies to help you boost your bottom line.
Aim To Reduce Running Costs
When it comes to increasing your profit, you won’t be able to do it if your shop has high running costs. So, look at your shop and think about where you can cut costs, without turning it into a dark store with rubbish products.
One option is to look into wholesale distributors in the UK, or your area that can help to cut stock costs and offer discounts. It may also be worth looking into reducing energy costs by changing light bulbs to LEDs, as well as looking into which tasks can be automated.
Optimize Your Products (if possible)
You will want to get your hands on the products that have the highest profit margin, so look at your sales data and spot what the top performing items are and ensure you are well stocked, and that said items are well displayed in your shop.
It is also worth using a Pareto analysis to identify which items generate the most revenue in your store and making sure that you are never low on these items.
Customer Experience
A happy and satisfied customer is likely to go back to a shop and will also be more likely to recommend it to others. So, get yourself and your staff trained on how to offer exceptional customer service. This can look like anything from a friendly greeting when customers enter the shop, all the way to helpful advice about the products you are selling. Ensure that your shop is always clean, tidy, and well organized and, if you can, invest in some air fresheners, to help your store smell amazing and appear more appealing to passers-by. It works and can help customers link your store with a certain aroma; go for something bold like citrus!
Effective Pricing Strategies
Most people have heard of the old $1.99 vs $2 sales trick. It’s simple, and it makes the former product more appealing, all due to the removal of 1 penny!
However, the right pricing in your store will have a huge impact on your profit margins and will appeal to customers. Aim to look into the prices you have for your items or services and compare them to market trends, as well as with your local competitors.
It can be worth conducting experiments linked to promotional pricing. This can look like bundling items together to encourage higher spending from your customers, or it can be offering seasonal discounts if you offer a service.
