Catalysts are deliberate and outcome-focused actions the company takes to increase customer interest and sales.
These top six catalysts have sparked revenue and profit growth for hundreds of Trivers Consulting Group clients over the past 20 years. Pick one of these that captures your imagination and start implementation today. As I write in Tinker, most of the time all you need is a hunch to get started.
Six Catalysts for Revenue Growth
Catalyst #1) Raise your fees or prices every time you add value to an existing product or service. Most of the time added value is in the form of convenience or advice.
- One CEO told me his company offers a lot advice—for free—when their customers buy their product. When I asked why, he said they hadn’t thought their advice is so valuable that they could charge for it! Believe me, you can.
- Another owner offered guaranteed appointments for a specific set of customers but didn’t think they’d pay for the convenience. They did.
- One client CPA implemented a policy that fees would increase the closer to April 15 that his clients submitted their tax information. The CPA was still exhausted, but his bottom line looked healthy.
When you’re adding value to an existing product or service, increase your price or fee.
Catalyst #2) Improve and innovate current offerings for quick added value and increased revenue. Sit with your product design team (create one if you don’t have one) and schedule 3-4 launches of innovations and improvements each year. This schedule requires the company to think frequently about customer needs and wants, how new value justifies a new price, and how you’ll deliver them. Your regular and best buyers will appreciate your innovations and improvements.
Catalyst #3) Calculate the profit of every sale before you close the deal. If it isn’t profitable, don’t make the sale. Revenue without profit isn’t going to keep your company going and growing. Apply these two practices without fail:
Create an appropriate profit margin for each individual product/service category; do the same for subsets, where it makes sense. One size profit margin should not fit all.
Make sure that everyone in the company who quotes prices or fees understands what the various profit margins are. Give them tools to respond to challenges and/or objections.
Catalyst #4) Never discount! Discounts reduce the perceived value of everything your company offers in the market. Have a range of offerings, from low cost/easy to access to those requiring a significant investment for extraordinary value. This helps you meet the value and price preferences of various buyers. Plot these on the GO CURVE. Let discount shoppers go elsewhere. They are not worth the lost revenue and the lost perception of value.
Catalyst #5) Be quick to add new offerings as markets and customer preferences change. Never be stale. This is a different from catalyst #2. At least once per year, review all your offerings and decide which ones to take off the market. You’ll probably want to remove those with the lowest profit margins and/or the lowest volume of sales. At the same time, using your intimate knowledge of your buyers, develop, design and deliver new offerings. Focus on fresh ideas and new value with prices commensurate with their value.
Catalyst #6) Abide by the 80/50 rule of revenue: 80% of revenue comes from 50% of current buyers. When at least 50% of your buyers are contributing 80% of your revenue, you reduce your revenue and profit risk big time.
There’s another huge benefit of 80/50: Requiring the company to generate so much revenue from existing buyers leads to more creativity and imagination as you work to offer products and services that they will purchase. This creates a wonderfully productive cycle of growth: buyer buys->you cultivate and nurture->buyer buys again->you innovate->buyer buys again->more cultivate and nurture-> more innovation->and so on.
Small Changes, Big Results
These catalysts require small changes to your policies (#3 and 4) and your practices (#1,2,5,6). Take a snapshot of where you are today in each area. Write a simple plan—starting date, who, what, how, and benchmarks. Then GO!
Growth is the key to prosperity today and wealth tomorrow. What are you waiting for?
PS. Here are 3 ways I can help you achieve the results you deserve.
1. Download 2019 GO CURVE Blueprint. It takes you through the alignment of buyers and offerings and shows you how to increase sales to your ideal buyers.
2. While you’re on my website go to the INSIGHTS tab and feast on dozens of articles and other content.
3. If you want me to work with you privately and coach you and your firm to success then let’s start a dialogue. Send me an email, tell me a bit about your firm and what you’re looking to achieve. Ideally you’re between $500K and $5M in revenue now. I’d love to hear from you.