In the world of economics and finance, profit maximisation is an extensive topic. A lot of educational institutions teach this topic over a semester on its own, due to its comprehensiveness. TradesFormation understands that learning such a technical topic can be difficult for tradies because their time is limited, so we have come up with a defined but straightforward business and sales course. In this article, we will outline how to maximise profit from sales and marketing efforts.
Profit Maximising through Marketing
Focus on Referral Programs
Launching a referral program is one of the most effective marketing strategies a tradie can do. It is a growth marketing strategy that encourages existing clients of the business to do word-of-mouth referrals to people they know. The most effective referral programs offer customers price discounts, incentives, and other motivational tactics to get things going. So how can they maximise profit with this strategy?
Referral programs for tradies are short-term strategies with long-term effects. It means that the goal here is to attract new clients through previous clients. To make it profitable, tradies should be able to make referred clients happy and satisfied with their service so they can also refer the business to other people. The referral program should have a snowball effect to be a success and provide more profit to the business.
The pandemic has opened many business owners’ eyes to the world of digital marketing. Even post-pandemic, digital marketing strategies will continue to prosper and might take over traditional marketing strategies such as TV, radio, and print advertising. When venturing into digital marketing, a budget has to be set, and funds are allocated as activities need to be paid.
The most reasonable digital marketing strategies to venture into for tradies are website development and search engine optimisation, social media marketing, email marketing, and LinkedIn marketing. All of these strategies have their own purpose in generating profit for the business. However, these tactics have related costs, so how can tradies maximise their profit while doing these activities?
To maximise the profit from these digital marketing tactics, tradies must build a list of generated leads that they can eventually use for their other campaigns. This list can be reused in digital platforms or experiential campaigns like trades shows and other business-related events.
Profit Maximising through Sales
In sales, it is crucial to know how the customer thinks and what their decision process is. However, tradies should not be confused between the business’ ‘sales process’ and their customer’s ‘decision process’. The sales process will serve as the skeleton of the trades business from how tradies prospect, to closing the deal and getting feedback from the customer. Whilst the client’s decision process coincides with the sales process. This means that the sales process should have a wiggle room to accommodate and consider how the client thinks and makes decisions in order to make a profit for the business.
In between the two processes, tradies will incur costs before they can close the sale, so to ensure that they will profit from a client, the sales process should be flexible enough to accommodate the decision process of the client. Prospecting and generating leads are already laborious tasks in the sales process, so when at the negotiation level, be considerate to what the prospective client wants and find the middle ground where the client will be happy and the tradie will profit.
Turn New Clients to Loyal Clients
When prospecting and generating leads, it is normal for tradies to shell out lots of money in the early stages of the process, but learning to recover from this investment should be the next priority. To recover from the loss and maximize the profit from the investment of prospecting new clients, tradies should convert these clients into loyal customers. How can tradies maximise profit with converted loyal clients?
The loyal clients should be able to sustain the business in the long run. As mentioned above, when tradies start to build their loyal clients, they can do the most effective marketing tactic for tradies: referral marketing for free. While prospecting and referral come at a cost in the beginning, they should diminish over time because the loyal clients will have already built your branding and reputation.
In the Sales Process, receiving feedback from the clients is a critical stage. Part of it is receiving positive reviews that can be used as marketing collateral and critical reviews so tradies can know their areas for improvement. They can maximise their profit from these clients by receiving this kind of review, improving their work, correcting their mistakes, and getting fresh ideas from them.
Would you like to know more about profit maximisation and other business-related disciplines? TradesFormation can help you be the best tradie out there! Join our business coaching classes, sales and marketing training, and get business consultation from one of the top business coaches in Sydney. We’ve recently launched our digital marketing services, encompassing website development, search engine optimisation, and social media marketing. The additional services are created to assist tradies in their digital marketing journey, for this is a new way of marketing in this day and age.