You are starting out in the business industry and have a BRAND NEW business but you have no real idea how to structure it to generate a high amount of profit or how to get it generating profit at all.
I will present to you what I like to call the 3% rule that will absolutely CHANGE the way you view business & how you act with numbers! So what is the 3% rule?
Increase prices by 3%
When increasing your prices by 3% of the original price, it will be settle enough to not disrupt any flow of movement but also impactful enough to where it will make a difference in the total revenue and total profit at the end, after subtracting all expenses. Now you must be questioning the following discussion, when is the right time to increase prices? The best time to increase prices is when the business will recieve the least amount of resistance. A business has different cycles of sales and seasons. For example, restaurants in Florida have higher sales revenue in the months mid October to late March due to “snow bird season”. That being said, the northerm side of the states have a lower sales revenue due to the higher percentile migrating for the winter. So for the northern side, its highest sale revenues would be from April to early October.
Decrease direct costs 3%
Direct costs can be lowered in a variety of different ways. The first main way is by reducing employee turnover. Often times in businesses, there are excess employees when not needed. Instead of having extra employees on the payroll that are not needed, focus on having a stable group of employees that are highly effective. Another highly effective way to cut direct costly expenses is by wisely choosing your supply vendors. Often times, larger traditional office supply vendors have higher cost prices in comparison to Amazon per say.
Deals for customers to buy 3% more in sales
Promotional deals are highly effective for customers. A customer will often times spend more by seeing small add on enhancements. Such as a $5 recycle grocery bag at Whole Foods. Low add on enhancements are a phenomenal way to get a costumers attention in line to check out and make another sale!
In the simplest terms, there is no better decision. You’re now in total gasp that I just said that. I was too when I found this out through experiences. Better is relevant. Each and every decision has its own outcome. There is no “better” decision. You could’ve chosen to buy the amazon stock in 1996 and now be a billionaire but have died at age 27 because you were on a plane to attend a conference in Singapore. That is life. You could’ve chosen to drop out of highschool at 18 and become homeless while being a drug addict and now be age 43 and rated as the top motivational speaker in the world. There is no “better” decision. Every decision you make has its own outcome. Lets say a decision that was made had a negative outcome, what do you do? You move on, you lost, let it go!!! Make another decision and keep moving forward. But, I will say this… Better feels worse. I will say it again, better feels worse.
When you have been living in an unhealthy routine for so long when you try to get better it often times feels awkward because you’re not use to it. Your brain and body enter into a rejection mode because it does not recognize the new actions trying to be embedded in. Bad feels good because it is comfortable and better feels worse because it is new. So often times before you get better you get worse. But, there is no “better” decision because better is relevant. There is better for each purpose but not as a whole it is simply a perspective and outcomes of each decision. Flip a coin, make a decision and go!!!
Now I know what you must be asking yourself right now, how the heck do I do that? In order to be authentic, you must accept yourself for who you are. Not who you should be by now but who you are. It really is that simple but, somehow the most difficult thing in the world. We are living in a society where we take into consideration what other people think of us more than what we think of ourselves. I mean 100% no BS think about it, you agree with things you do not believe in just to fit into a group of people that you don’t even like. I am going to type in all caps for the people in the back that don’t have 20/20 vision. YOU AGREE WITH THINGS YOU DO NOT BELIEVE IN JUST TO FIT INTO A GROUP OF PEOPLE THAT YOU DON’T EVEN LIKE.
I am coming from personal experience and witnessing it first hand. None of this information is false. I was her. In highschool, I wanted to fit in more than I wanted to be myself. Which let me tell you, those were the roughest years growing up. How could they not be, I was trying to be somebody I was not. I was sacrificing my beliefs, my potential, and most importantly my character just to be a part of the “popular group”. That might not be your story, you might be selling a product you don’t necessarily believe works. Point is, you’re selling yourself short just to be a part of the “cool kids”.
You’ve got something that the so called “cool kids” don’t. If you had all of the characteristics of the “cool kids” you would’ve had nothing to bring to the table. Lets be honest, chances are you made profit from the table that the “cool kids” sit at. If ask me, that’s pretty f***ing cool.
Long advice short, only say what you believe in. Do not look for validation on social media and in people because if you do, you will be disappointed every time. You will begin to view yourself as the deficit rather than your surroundings and environment. Be authentic and f*** what the “cool kids” think about you.