- Mix it up. Increasing sales and cutting costs is on everyone's mind. Most people think that in order to grow sales you have to increase prices. That's certainly one way, but you can also offer add-on services and products that complement your current offerings, in turn increasing your sales average. Also, to cut costs see what processes you can automate or outsource.
- Separate yourself from your competition. Find ways to differentiate yourself. Whether it's entering print competitions to refine your craft or finding ways to increase your social media presence or maybe it's becoming known for working with a specific charity. Be mindful that YOU are the differentiator in your business.
- Streamline overhead costs. Workflow tracking and assessment needs to be done regularly to assure maximum productivity and to identify inefficiencies. Unfortunately tracking productivity is often overlooked but it's a great way to identify opportunities to reduce costs.
- Rent killing your business? Explore options for co-leasing a space with a like-minded business, whether that business is photography related or they attract a similar clientele. There has been also an increase in the number of owners that have brought their business in-home. Bottom line, if paying rent is sucking up your profits, find an alternative.
- Keep them coming back. It is easier and less expensive to keep current clients coming back than it is to gain a new client. Consider a referral program to incentivize referrals. Also evaluate your client touch points and create new ways to take your customer service to a whole new level of hospitality.
- Selling every step of the way. Selling begins with your first point of contact. Your sales strategy should be clearly defined. Anyone in the studio who comes in contact with a client is a sales person and needs to understand the businesses' unique sales strategy as well as be well-versed on all of the session and product offerings.
- Make it easy to buy. Keep it simple, simple, simple from the client experience to the product offerings to collecting payments. Remember the ordering appointment is not a viewing appointment. Consider incentivizing your clients to make their purchase at the ordering appointment. You can also set up a session fee structure that includes a print credit or allow for payment plans to make it easier for your client to make larger purchases.
- Understand your cash flow challenges. Due to the cyclical nature of most photography businesses, consider promotional offerings during off-peak times, perhaps ones with charitable connections. Not only can they generate some cash flow when it's much needed but these promotions can also increase your presence in your market. Build reserves during peak season to help smooth those months when cash flow is challenged. This way you can avoid using credit cards and incurring high interest expense charges.
8 helpful tips for increased profitability - PPA Today
8 helpful tips for increased profitability
with Bridget Jackson, CPA and PPA Business manager
In April, Bridget brought you some pretty great last-minute tax tips. Hopefully that gave you a chance to give your finances a good, stern look. Did you like what you saw? Even in the most successful businesses, you can find ways to boost profitability.
That's where Bridget's column comes in handy! Here are 8 helpful tips to increase your profit margins:
Bridget Jackson is the manager of PPA Business and also a CPA. She's helped hundreds of photography studios be more profitable and will address some common questions each month. Heed her advice folks--this lady knows her stuff!