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.

Comments

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 ROI of Fractional CXOs: Leadership That Delivers

  Having the right leadership can transform a business, but finding and affording top-tier executives full-time isn’t always feasible. Fractional CXOs offer a smarter alternative: access to expert leadership on-demand, without the commitment of a permanent hire. Let’s dive into the ROI of Fractional CXOs and why they’re becoming a go-to solution for businesses seeking impactful results. Immediate Value Without Delay Time is critical, especially when your business is facing challenges or pursuing growth opportunities. Fractional CXOs step in quickly and start delivering value from day one. Their ability to hit the ground running means your business can address key issues without waiting months for a hire to settle in. Specialized Expertise Without Long-Term Commitment Hiring full-time leadership is a big commitment, both in terms of cost and time. Fractional CXOs solve this challenge by offering deep expertise tailored to your specific needs—whether it’s scaling operations,...

Fractional CXOs: The Future of Leadership is Already Here

  Leadership is evolving. More businesses are moving away from the traditional model of full-time executives and embracing Fractional CXOs —senior leaders who step in part-time to bring their expertise without the long-term costs. What was once considered a niche solution is now becoming mainstream. From start-ups to large corporations, companies worldwide are turning to Fractional CFOs , CMOs, CTOs, and more to scale efficiently, manage costs, and bring in top-tier talent on demand. Fractional CXOs are experienced leaders who take on high-impact roles for companies on a part-time or project basis . Instead of hiring a full-time CFO, for example, a business might bring in a Fractional CFO to manage financial strategy during a period of growth. These executives work across various industries, offering leadership in finance, marketing, technology, operations, and more. They help businesses solve complex challenges without the burden of a full-time salary or long-term commitments. ...