Product or Service Repeat Purchase Potential And Profitability
by Samson Itoje
Whatever product or service your business sells, the more you sell the more money you make. And the more money you make, the greater your business profit. And the greater your business profit, the less financial problems you will have and the happier you will be.
It gets even better.
The bigger your business profit, the more money you have to re-invest in the business to grow the business and grow your profit even bigger.
Yes, wealth creates more wealth. And greater wealth as a result of having a prosperous business brings greater time and money freedom.
This is a universal principle that is valid irrespective of the country you live or the business you do.
Your Business Goal: Make Profit And Lots of It!
Since the ultimate goal of starting a business venture is to make profit, you must therefore be passionate about seeking for ways to sell more of whatever product or service you sell so you can make bigger profit.
Yes, make profit and lots of it!
Now the big question: What are some of the factors that increases your potential to make big profit from your business?
There are three key factors:
1. Launch the appropriate business promotions to attract more potential customers to your business. The more potential customers who hear about your business and the products or services you sell, the greater the number of people who will convert to actual paying customers.
2. Ensure your business sells products or services with good profit margin and
3. Ensure your business sells products or services with good repeat purchase potential
This entrepreneur article discusses the third item above . . . the need to sell products with good repeat purchase potential.
The Impact of Repeat Purchase On Business Profit
How does repeat purchase increase your business profit?
Well, repeat purchase means that customers who have previously purchased products or services from your business return to buy again.
When existing customers return to buy again, they help grow your business sales and your profit in two ways:
1. Their new purchase amounts to new sales
2. Their new purchase is achieved at zero advertising cost. Therefore, the greater the number of customers who buy again from you, the less your cost of sales and the greater your business profit.
Business experts will tell you that it takes far more money to acquire a new customer than to retain an existing customer.
Therefore, as the founder and CEO of your own business, you must laser focus on increasing the percentage of existing customers who return to buy from you again.
Do the following:
1. Choose to sell products or services that people can easily return to buy again e.g. food products, cleaning products, health products etc
2. Sell products with good profit margin
3. Offer top notch after-sales service and customer support
4. Offer existing customers discounts that encourage them to buy in bulk
5. Have a database of existing customers so you can reach them with new offers at reasonable intervals (and without being intrusive)
6. Run promotions targeted at existing customers . . . promotions that gives them incentives to be loyal to your company
Remember that the goal of starting a business venture (or a company) is to make profit. And the more your sales volume grow, the more profit you make.
So, focus on making your existing customers super satisfied so they keep buying from you. And, more importantly, so they can leave impressive reviews in social media that will attract even more customers to your business at zero advertising cost.
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