5 Simple Profit Boosters You Can Try Today

Let’s discuss five simple profit boosters you can try today. Retailers are, or should be trying every day, to improve their businesses’ profitability in some way or another. Typically, the items considered “improvement” end up at a point where I sometimes call “next things.” These are those lofty goals of store remodels, added services or products, or discussions of perhaps even adding another store. But the reality is that if you are looking to add a little to the bottom line, there are some straightforward things you can do right now – for free! 

1. Review Retail Pricing: Find an item (or items) in your POS that you sell tons of by running a report for items sold organized by the number of items sold, with the highest number being the top of the list. As you go down the list, there are always items that you can raise the price n. These will typically be service items, but some small things need a price boost since they haven’t, which you can increase the price if they haven’t been adjusted in a while. Depending on your business size, I guess you could have just added thousands to the annual bottom line in a few minutes. Imagine adding a dollar to a service item or part you sell hundreds or thousands of, and then multiply it as you go down the line. At times you also may have a product that has increased in cost that hasn’t been updated.
2. Re-evaluate your recurring charges: Scrutinize your credit card bill and bank statement monthly and evaluate all charges. I realized that I had several annual fees for software and anti-virus subscriptions we were no longer using. These can sometimes be a significant pain to stop, and they are easy to ignore. Likewise, you may be getting carpet runners changed out regularly, or shop rags, etc. that could be cheaper to replace at Costco or Sam’s Club. I am sure almost every business has several forms of revolving subscription services or charges that could be eliminated to give you some hard-earned cashback.
3. Credit Card Rewards: This is getting harder to do, but many vendors still take credit cards. Why not use that option and reap the rewards points when you can? Just make sure you pay your card balance off every month! Also, pay attention to dating terms that may give you payment discounts for early payments higher than the credit card rewards. Be constantly vigilant for those little individual wins that add up over time.
4. Credit Card Processing Fees: These are a significant expense. Saving .25% equals $2500 on one million dollars in transactions. If you are doing $500K in CC transactions, it’s still $1250, which isn’t bad if you can find those savings. While you may not see .25%, you may see enough differences to at least consider changing. Shop around! We all have had a million people want to let them compare their rates to what we are currently getting, and they do it for free – so let them. Make sure you thoroughly understand everything and what the end effective rate differences are.
5. Super Size Your Repairs: Ask each customer if they want new bar tape, grips, tires, etc. This concept is old hat to well-oiled retailers and service writers, but constant diligence is needed to ensure each person writing service tickets knows this. It’s also excellent customer service when done tactfully as many people may have wanted new bar tape or a seat, but didn’t think of it while dropping the bike off. Now when they pick up their bike, not only is it repaired, but they have a new comfy seat or cushy bar tape – a win-win.
6. Bonus item! Did you know some Credit Card processors provide the printer rolls for free? Well, I didn’t either until my wife figured this out at some point. If you are using a separate machine, then your POS check it out. While it may not save you thousands, it will undoubtedly cover lunch a few times.

 Of course, there are many other ideas just as fast, easy, and quickly implemented as these. Always think about the money coming into and out of your business with a frugal mindset. Pay close attention to bank and credit card charges, closely monitor invoices and your POS for possible wholesale price increases that may go unnoticed, and continuously review retail pricing to increase margins.

Words by David DeKeyser

David DeKeyser and his wife Rebecca Cleveland owned and operated The Bike Hub in De Pere, Wisconsin, for nearly 18 years. In 2018, they sold the business and real estate to another retailer based in a nearby community. David now writes the Positive Spin series on Bicycle Retailer and Industry News and he writes articles for the NBDA’s blog, Outspokin’. David also provides business consulting through the NBDA’s P2 Consult Program.

 

 

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