Margins

Making money is not easy...

Before we dive in, let’s lay down three important points:

Simplification is Key: We’ve stripped down everything about margins to its core principles. This means whether you’re running a large manufacturing plant or a small retail shop, you can apply these principles effectively.

Ask the Right Questions: Instead of wondering how much you already know, focus on what you can learn and implement. Asking questions like “What can I apply?” can lead to valuable insights.

The 72-Hour Rule: Ever heard of it? It’s simple—when you hear something new, act on it within 72 hours. Otherwise, the likelihood of taking action drops significantly. So, let’s beat that rule today!

Now, let’s start by defining margins. Simply put, it’s what you earn after subtracting the costs from the price you charge. But here’s the tricky part: most businesses struggle to measure margins accurately.

Why? Because traditional accounting methods like profit and loss accounts often overlook crucial expenses like loan repayments, taxes, and supplier costs. This makes it challenging to get a clear picture of your true margins.

Now, onto the two components of margins: prices and costs. Many businesses set prices based on their competitors, hoping to cover their costs and make a profit. But this approach often leads to margin squeeze, especially when costs unexpectedly rise.

So, how do you tackle this margin maze? We’ve got a simple yet powerful model to guide you through:

Identify Your Transactions: Think about the different types of customers you deal with—your A-grade customers who bring in the most profit, your average B-grade customers, and the troublesome C and D-grade ones.

Target Your Blue Customers: These are your best customers, the ones who bring in the most profit. By understanding what keeps them loyal—whether it’s quality, service, or price—you can tailor your marketing efforts to attract more of them.

Ditch the Reds, Convert the Oranges: Your least profitable customers, the reds, are dragging down your margins. It’s time to cut ties with them. As for the oranges, there’s potential to turn them into blues with the right approach.

But remember, this isn’t a one-time fix. It’s a gradual process that requires a shift in mindset and continuous effort. So, make a start today, whether it’s analyzing your transactions or reaching out for expert advice.


Marketing

How to get hot leads that know what you do and why they should buy from you...

First off, we’re keeping things super simple here. We’re breaking down big ideas into easy-to-understand bits that anyone—whether you’re a newbie or a seasoned pro in sales and marketing—can grasp.

Now, I know you might be thinking, “But will this really work for me?” Let’s hold off on those doubts for a bit and see if we can spark some fresh ideas together.

Ever heard of the 72-hour rule? It’s all about acting fast. If you snooze on an idea for more than 72 hours, chances are you’ll never act on it. Let’s break that cycle, shall we?

Okay, let’s talk about the nitty-gritty of sales and marketing. Social media has changed the game big time. Everyone’s online, and they’ve got access to info about everything. Plus, some businesses have a leg up just because they know how to work those modern marketing systems.

But fear not! We’ve got two simple models to cut through the noise. Whether you’re doing stuff online or offline, we’ve got tips to help you stand out.

Now, let’s understand what your customers really care about. Some folks want top-notch service, others prioritize quality, and some are just looking for a good deal. Figure out what your peeps want most, and focus on delivering that.

Here’s the secret sauce: focus on being the best at one thing (service, quality, or price) while still doing okay in the other two areas. That’s how you’ll shine in a crowded market.

Next up, let’s talk about lead magnets. These are like magnets for potential customers—they draw people in with valuable info and insights. Think of them as your secret weapon for winning over new clients.

Now, how do you put all this into action? Stick your lead magnet on your website where folks can’t miss it. And don’t forget about advertising on platforms like Google and Facebook to spread the word even further.

To wrap things up, remember that progress takes time. Start small, but start now. And hey, we’ve even got templates and brainstorming sessions to help you along the way.


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