Skip to main content

Do not loose money even in your 1st Transaction



It is a very general business tendency that whenever any entrepreneurs starts making initial transactions they think more from the top line revenue , which is not bad at all

Some of the top objectives are frequency of Some of the top objectives are frequency transactions repeat transactions, volume of transactions etc. Well this might just make your top line very healthy as the revenue starts flowing in

All this may come at the expenses of loosing money at every transactions primarily due to some extraordinary incentives being offered to lure to customers to be the first users. The core thinking here is that customers who have not heard about will not buy your product unless given on discount.

All this may come at the expenses of loosing money at every transactions primarily due to some extraordinary incentives being offered to lure to customers to be the first users. The core thinking here is that customers who have not heard about will not buy your product unless given on discount.

Yes you are an unknown brand , new to the market so you are forced to think that i need to subsidize my offering to get the customers. This has been traditionally done in the past so we also need to do it

Well it may not be possible always to be profitable from the day one but it is very strongly recommended not to loose money on every transactions. This does not mean that you have to make profits but even if you are able to recover all the money spent in making that transaction than i guess you are on the right track to me profitable soon

Leaving at the later stage to become unit positive may not be easy & you to might get stuck in that vicious cycle. Once you give the customers a discounted price that you are yourself setting the standards in the market & will not be able to move up the chain sooner.

Discounts are not bad , they should be given but the timing & the way they are supposed to be given is very important


Not to forget the customer loyalty doesn't come from the incentives , it comes from the product & impeccable after-sales service.

Labels:

Comments

Post a Comment

Popular posts from this blog

Why is digital marketing important for Medium and Small Enterprises ?

One of the key differentiators of the success of a business is the number of customers that it can reach as more customers mean more sales volume.   One of the technological innovations that helps a business in this direction is digital marketing . It is indeed a boon for MSMEs as it lets you reach your target audience with ease, simplicity and at very low cost. Cost is always a concern for most MSMEs. Why would anyone not want to use the power of the internet with over 3 billion users to further the cause of their own business? But it is a fact that deploying digital marketing for their own benefit seems a herculean task for many MSMEs as they feel that they are not adept nor attuned for the digital world, they also tend to think that they will not reach their target market or they simply do not have adequate information, lack sufficient human resource and tools to manage the digital world. Here is where organisations like Outsourced CMO can help these MSMEs bridge the
123 comments
Read more

THINK AND GROW RICH - VISION PRECEDES SUCCESS

  All entrepreneurs start with an idea and a belief that their vision can have a massive impact. The vision is literally the workshop wherein are fashioned all plans created by the entrepreneur. The impulse, the desire, is given shape, form and action through the vision and mission statement derived from the imaginative faculty of the mind. Ideas are the beginning points of all fortunes. Ideas are the product of imagination. Whoever you are, wherever you may live, whatever occupation you may be engaged in, just remember in the future that any vast empire of wealth and influence grew out of a single idea mixed with the ingredient of a vision. If you are one of those who believe that hard work and honesty, alone, will bring riches, forget this thought! It is not true! Riches, when they come in huge quantities are never the result of hard work alone! Riches come in response to definite demands, based upon the application of definite principles, and not by chance or luck. All ma
2 comments
Read more

Criticality of Emotional Intelligence for business success

Starting a business is very tough and time-consuming and most entrepreneurs would vouch for the fact that it is both physically and psychologically draining experience. Only the most motivated, goal-oriented and passionate people can succeed in their ventures and dare we say most successful entrepreneurs have a high level of Emotional Intelligence/ Quotient (EI / EQ).  But what is the relation between business success and EI?  Does a person with higher Intelligent Quotient (IQ) but lower EQ stand a better chance at succeeding in business or will a person with a higher EQ more often than not score over a person with higher IQ but lower EQ. According to Travis Bradberry, co-founder of TalentSmart and author of bestselling book " Emotional Intelligence 2.0"; there is a direct co-relation between EI and success in the workplace. In his research, Bradberry found high emotional intelligence among 90 per cent of top performers, but in only 20 percent of bottom p
1 comment
Read more