As an organization in the business of making money, your executive meetings, at some point, ponder the million (or possibly even billion) dollar question: How can we achieve profit growth?
With profitability as the end goal in mind, you've likely explored the obvious solutions:
But what about the not-so-obvious? Let's be realistic; these ideas are not nuanced and often require hefty investment without guaranteeing you'll get the results you want.
So what if you can achieve profit margin expansion without increasing the number of sales or having to make the tough decision on what goes on the chopping block? The opportunities could be right in front of you, hidden in your data.
Price increases are a quick and simple way to improve your margin. Of course, the concern of customer churn lingers. I mean, who would want to pay more for the same thing?
All this is alleviated through price optimization. As a solid revenue strategy, you can use your data, such as product purchases and marketplace demand, to ensure you achieve price equilibrium: Highest possible price, lowest churn, and maximum margin expansion.
The ProfitOptics Margin Express tool, for example, is a pricing optimization software that lets you run transactional, dynamic pricing scenarios backed by marketplace trends. You can find and set (virtually unnoticed) increases that boost your margin while minimizing the number of customers who leave you — potentially adding millions to your bottom line without much risk or effort.
Another fast profit growth tactic is ensuring you get everything due to you. Manufacturers and resellers often use rebate incentive programs that promote cost savings to their customers. Unfortunately, these sales rebates aren't always delivered as promised.
That's where a robust rebate management solution comes into play. For instance, our ProfitOptics Rebate Optimization tool tracks and analyzes rebate agreement terms, monitors product purchases against those agreements to see if they meet the conditions, and then presents potential claim opportunities in real time.
The result: You can widen your margin gap by getting all rebate dollars entitled to your business.
Leveraging these unconventional revenue strategies puts you on a fast track to profit growth. They don't require costly investments that may not pan out and ensure maximum customer retention by taking real data insights to back your price increase decisions.
ProfitOptics Pricing Optimization software helps a Fortune 150 distributor recover $50 million of annual profit lost to inflation. (Read the full story)
Fortune 25 distributor recovers their eroded margin and increases profits by 4x by leveraging the ProfitOptics price optimization tool. (Read the full story)
Plumbing and HVAC company identifies optimal price-change opportunities that increase their profits by 1.2% using the ProfitOptics price manager software modules. (Read the full story)
Pricing optimization and granular rebate management allow you to grow your profit margin through insights hidden in your data without generating a new customer or selling another unit of product.
Schedule a P3 discovery call today to pinpoint the obstacles preventing you from executing your revenue strategy to achieve margin expansion. We help you get clarity on how to transform your profitability through our proprietary tools and a clear plan of action.
