Sunday, September 1, 2019

How To Spice Up Commodity Products to Increase Revenue and Profit Margins

Let's say you sell a product, such as a heavy-duty blender that you drop ship from a contract manufacturer.  You sell it for $X, buy and ship it for $Y, and you make $(X-Y).  How can you increase your revenues and profit margins?

One way is to build high-margin information products that you can bundle with your product.  In the case of the blender, you can "upsell" a deluxe set that features the blender and a recipe book.

The value of the recipe book is in the quality of the recipes, which isn't dependent on the printing / shipping costs of the book.  Thus, the recipe book can increase both your revenue and profit margins.

© 2019 Praveen Puri

Praveen Puri is the Strategic Simplicity® expert who has delivered over $400 million in value. He helps clients identify the key changes that result in dramatic improvement. Visit PuriConsulting.com

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