Good morning, good evening, good afternoon, whenever it is you happen to be reading this. I am going to cover today a crucial issue that a lot of business owners run into CASHFLOW.
So, let's go over how to use marketing to crush a cashflow crisis.
I know it's just after Christmas time, that was probably a huge boost to your business in the month of December. But that means the month of January, like a lot of us business owners now, is a cashflow crunch. So I wanna give you today is three great quick things that you can do with your marketing to help overcome those cashflow problems.
Alright, are you ready for this?
Cause I don't want you to get into a cashflow bind and make poor decisions because you're cashflow strapped. So let's make sure you've got plenty of cash to get done what you need to get done to make 2019 amazing. Okay, so here we go.
Three Quick Tips...
#1 PRODUCT BUNDLING
This is what I like to call the Mcdonaldization of your products.
So essentially what product bundling means is taking products that would work really, really well together and blending them into a package to sell to your clients 'cause a lotta the time we have clients that buy from us and they buy one thing, or they buy two things.
What would match perfectly with that is a second or a third thing that we could bundle together.
increase the price a little bit, and wind up making more profit, making more money per sale by bundling those products together. Mcdonalds and a lot of fast food restaurants do this beautifully because you buy a meal. You go in looking for the burger, you walk out with the fries and the drink, which drastically increases the amount of money every client spends in their business.
So product bundling is a huge way to drastically increase the amount of cashflow in your business and you do that through your marketing strategy.
So think about your client and what else they could use when they're buying product A to mix that or service A, mix that with another thing that you can buy and bundle together, jack up the price point, make more money.
#2 ADD-ON SALES
Alright. Next thing, add-on sales. Now, a lot of people think this is the same as product bundling. But it's not, not always.
Often when you sell products there are natural add-ons that go beautifully with that one thing. You can't always do product packaging, it doesn't always work. So sometimes just simply add-on sales are the ideal way to go.
For example, at one of my businesses we do doggy daycare. You may not want to product bundle in this case with a specific treat or toy or anything like that because then you'd be selling them together all the time and the clients may not want that.
But, you can definitely crank up how much every client spends with your business by doing an add-on sale and offering something that's new and novel to your business or that treat or a toy or something like that.
So the great part is you can do add-on sales and you can flex them. They don't always have to be the same things as a product package should be.
You can do cool add-on sales and really take up the average client spend.
#3 Bulk or Term Selling
Now, the last thing I wanna get to is term or bulk selling.
So what that means is that you sell a chunk of something that somebody might buy on a rhythmic basis, so sell a whole bunch of it at one time up front normally for a better price point.
So let's use gym memberships or something like that for an example.
So a friend of mine, he owns a gym, and he was having a cashflow crisis, it was middle part of the year. The big turnover in January had happened but he hadn't been able to generate a lot of cashflow since, so it was about May and him and I were talking, and we decided that he was going to start selling year long gym memberships, a full year commitment, but sell it at a 40% discount.
Now, what happened was it drastically increased the amount of cashflow he had inside his business. Suddenly one contract was worth way more than it had been previously. And he used that extra revenue, extra cashflow he had generated, and invested it into marketing.
And what wound up happening?
He now had a bunch of new clients. So...What did he do?
He sold them more term.
Buy a yearlong membership at 40% discount!
Suddenly a whole bunch of those clients now bought yearlong memberships at a big huge discount and what happened?
He did it again!
He used some of that money, invested it into marketing and grew and grew and grew. And over that time, from June when we launched this all the way through to the end of December that year we tripled the size of his business by implementing just this simple term purchasing concept.
So in recap, if you're struggling with a cashflow crisis right now, and you wanna use some great marketing tools to get you outta that crisis, these are three great things that I would recommend doing.
Bundling product together, ensuring that you and your staff are always talking about add-on sales for your clients, and look at ways that you might be able to sell your clients a chunk of something that they would buy rhythmically, sell them a bulk amount of it, or a term amount of it all at one time and then use a bunch of that extra cashflow, invest in more marketing to then generate more and more clients.
My name is Michael Bridgman. I hope you got great value out of this post.
Thanks so much for checking it out.
If you got great value please give us a share, give us a comment or a like. We'd love to hear from you and any other tactics that you might think on how you could use marketing to increase the cashflow of your business.
Hi, Michael here from Thank You Media. A few years ago I spent $20,000 on a single marketing campaign that brought in only $3000 in revenue. The next year I spent $20,000 on a single marketing “strategy” and brought in over $285,000 in revenue.