Dig a Little Deeper and Get the Most
Have you ever awakened in the middle of the night with a thought in your head that made you sit up? Several weeks ago this happened to me and it was startling. Like a lightbulb coming on in my minor brain. More recently I shared this with a few friends and then a small group of business owners and the reaction was astonishing so I’ll share it now with you. Please let me know what you think. I’ll refer to this thought as the Law of the Most. Affect something in your business that happens the Most and you can make a significant difference in profitability.
Let’s cover a few examples. Consider the customer or customers who buy from you the Most often. What can you do to get them to buy from you more often? The customers who spend the Most; what can you do to get them to spend more? The customers who refer you to their family or friends the Most; what can you do to get them to refer more? The item that you sell the Most; what could you do to sell more of it? How could you raise the price of it? The item that you buy the Most; how can you buy it for less? The sales person on your team who sells the Most; what can you do to get them selling more? The person on your team with the highest check average; what can you do to get them even higher? If you’re in manufacturing, well what item do you manufacture that uses the Most raw materials; how can you make it with less. The item that takes the Most time to manufacture; how can you make it in less time? The item that requires the Most packaging; how can you package it for less? If you are in a distribution business what item costs you the Most to ship and can you find a way to ship it for less? Which vendors do you spend the Most with and what can you do that will get you a better price with them?
Here’s a few more. The employee who uses the Most hours; what are you going to do that gets them using less? The employee who demands the Most of your attention; what will you do to reduce that? What day of the week do you sell the Most; how can you sell more on that day? The hour of the day that you sell the Most; how can you make that hour even better? The item or items that have the Most profit margin for you; what can you do to improve those margins and then sell more of them? What about the marketing activity that gets you the Most new leads; do it more often.
Here’s my point. Sure it’s important to pay attention to the small fine details of your business but if it’s not happening much then deal with it and move on to something that makes a bigger difference. Dig a little and find out what happens the Most. Look at it this way, if I owned a coffee shop would it make more sense to raise the price of the dozen muffins that I sell every day by a quarter or raise the price of the 400 cups of coffee I sell by a nickel? By the same token, it is so much easier to get someone who shops with me 6 times a year to shop with me a 7th time than to get someone who shops with me once to shop with me again and certainly easier than getting someone to shop with me for the very first time.
I could go on and on all day with this. Get your team involved in this exercise of determining what’s happening the Most in your business. Affect that activity in a positive way and then enjoy a substantial difference in profits.
Take Action on the Law of the Most today and then Go Run a Lap. Business is Fun!