Discover spending and saving techniques to help boost your bottom line.
No matter the size of your company, increasing the profit margin is vital for success. After all, more funds help you reinvest in your business and contribute to the growth of Madison’s economy. Over the last 14 years, we’ve learned more than a thing or two about optimizing profits so that we can continue our mission to pay it forward in the community, while at the same time keep our pricing low for customers. In this post, we’re sharing a few valuable secrets that have helped us get a leg up. Here are a few ways to increase business profits at your company:
- Adopt socially responsible business practices
- Eliminate wasteful spending
- Increase productivity
- Earn trust
- Market to existing client base
- Give back to the community
Keep reading to learn how you can increase the profit margin at your company.
Adopt socially responsible business practices
Becoming socially responsible means that you hold yourself accountable for the ways your company’s operations impact the environment. Not only is this mentality beneficial to our planet, but it can also have a direct effect on your bottom line. Consumers are increasingly demanding this level of accountability from companies and those that take the initiative to become socially responsible have a competitive advantage. In this blog post on the benefits of becoming a socially-responsible business, we cite a study that suggests that social responsibility can influence purchasing decisions and lead to new business opportunities.
If you want your company to be more socially responsible, check out our articles on tips for adopting a business sustainability program and how recycling in the workplace can be good for business.
Eliminate wasteful spending
There are many ways that businesses spend more money than necessary. Whether it’s outsourcing too much, marketing inefficiently, overspending on equipment and supplies, poor expense tracking habits, or over-hiring. Wasting money puts a damper on your profits. One way to eliminate overspending and increase business profits is by streamlining your office supply expenses. Strategies like consolidating orders and keeping regularly scheduled inventory checks can help ensure you only order what you need. If you don’t have time to routinely take stock, we offer it as a free service.
Additional tips to save money on office supplies include using a single vendor, buying in bulk, and taking advantage of discounts and loyalty programs.
Increasing workplace productivity has endless benefits, including increasing profits. Maximizing productivity is important for a business because it can drastically reduce the time and energy required to produce a product or service – which has a direct impact on the bottom line. Try incorporating these productivity principles to help you work smarter and more efficiently. We particularly love the OHIO rule: only handle it once!
If you struggle with productivity, read our article about how to improve your productivity.
Maintaining a positive relationship with customers and prospects is another way you can increase your bottom line. If customers feel they can trust you, they’re more likely to make repeat purchases and refer you to others. In our article on ways to build trust with your customers, we outline profit-boosting hints including:
- Keeping the customer’s best interest at heart
- Fulfilling your promises
- Asking for feedback
- Being reachable
- Improving security
- Underpromise, overdeliver
- Communicating more
Market to existing client base
Companies looking for ways to increase business profits often forget about the precious source of income that’s right under their nose: their existing client base. Instead, they often focus their sales efforts on attracting new business and growth opportunities. However, financial experts estimate that a company can spend up to five times more acquiring a new customer than nurturing an existing one. And boosting retention rates by just 5% may increase business profit margins by a whopping 25-95%! This article contains ideas for marketing to existing customers that can help you nurture these existing relationships and ensure you remain top of mind.
Give back to the community
The final way to increase business profits on our list is a feel-good one. Lending your resources and support to organizations in need has a strong influence on consumer purchasing decisions. When you help others in the Dane County, WI area, your customers will take notice – and are more likely to invest in you over a business without a philanthropic reputation. Of course, increasing profits is just one of the benefits of giving back to the community. There are plenty of others, including enhanced brand image, tax deductions, team retention, a stronger community, and more.
These ways to increase business profits can help your company reach its goals. For more tips on how to improve your business, visit our blog here.
If you’re not yet an EZ Office Products customer, call our local customer concierge to discuss how we can help your Wisconsin-based business thrive at (608) 310-4300 today.