What are your most profitable products and / or services? And who are your most profitable customers? Look for the flow of money in your business and work out where the most profit is generated.
It’s important to differentiate between profit and turnover at this point… building turnover can sometimes be easy to achieve. For example, a quality hotel could fill all of its rooms every night, if it was prepared to sell them for £10. But, if it costs £12 to service those rooms (in terms of cleaning costs, lighting, electricity etc.) then they would generate turnover, but actually lose £2 per room. This equates to what we call ‘hamster on a wheel’ syndrome – you’re busy, but you aren’t making any money.
By following the flow of profit, you can identify who your best customers are, and you can then set a plan to target more of the same type of people. This makes much better use of the marketing resources you have available.
