In-store revenue depends on three fundamental factors: good management, promotion activity, and salesperson skills. To increase profits, you should also analyze the market situation, adjust the range of products offered and find ways to reduce costs.
It is necessary
SWOT analysis, marketing plan, business plan
Instructions
Step 1
Conduct a SWOT analysis that looks in detail at four aspects of the business - strengths, weaknesses, and opportunities and threats. While the first two aspects are internal and reveal the situation in the company, the second and third are related to the external environment. This type of research helps to understand the reasons for the lack of profit growth.
Step 2
Order an audit. It is worth analyzing both the business resources of the enterprise, including economic indicators, and the state. An audit of personnel may consist in revising the staffing table, changing job descriptions, photographs of the working day, and other aspects related to personnel. If we are talking about grocery stores, it will be useful to check the technologies for the production of semi-finished products and other products manufactured for sale at the enterprise.
Step 3
Review your business plan. If the expected value of profit in it is higher than the real one, find the discrepancy. Why the situation is developing this way, you can find out and analyze the marketing plan. Perhaps, the increase in the store's revenue does not occur due to insufficient resources allocated for promotion. Errors in defining the portrait of the target group (respectively, its consumer preferences), changes in the general economic situation, unaccounted for changes in the movement of customer flows, etc. can be considered as variants of marketing errors.
Step 4
Create a new marketing plan based on the mistakes you find. It may include three main blocks: an advertising campaign, a PR campaign and promotions required for online promotion. By taking certain actions, you can attract more paying audience. But raising a store's revenue is not the same as increasing profits. To get higher income from a business, there is one more important step to take.
Step 5
Reduce costs. This may include adjusting the opening hours of the outlet, the range of products, the display of goods, as well as revising the specification of commercial equipment that consumes too much electricity. Be sure to do supplier monitoring. Perhaps you are accustomed to working with the same importers, while others have appeared on the Russian market long ago, offering more favorable conditions. As in any business, there are no trifles in the trade.
