Sales Aren't Important, This Is...
Sales Aren't Important In A Business, Its Your Profits
It doesn't matter if you make 3 sales a day or 30 sales, the only thing that matters is your profits.
- Sally has 30 sales a day. She has a profit of $200 from those sales, which is pretty good.
- Compared to Robert who only makes 3-5 sales a day and has a profit of $150. His profits are higher than what Sally's was. It took her 30 days to make a profit of $200, it only took Robert 3-5 days to make a profit of $150.
It's important that when you see sales coming in that you know it all doesn't go to you. While people know that revenue doesn't equal profit, they fail to do the numbers and find out how much they are really making. If you know that you have to increase the amount of profits that you are making, then I would suggest start by raising the price on your best selling products.
Don't forget that your conversion rate also effects your sales. Click here to find out how and what you can do to improve it.
Increasing The Cost Of Your Products
I am not suggesting that you increase a product that is currently listed for $12.99 to $20.00. I am simply saying to raise them slightly to where you know it will bring in a higher profit. If you are worried that if you increase the price, that you will loose out on sales, all you can do is try it. If you raise the price on some or even all of your items, then wait for 3 weeks and see if your sales have increased. If they have decreased then you can always change it back to the price it was before. However, if you notice that sales are still steady or even increased, then you know that people are willing to pay a little extra for good quality items. If your buyers notice that you have raised the price, don't tell them that it's because you want to make a higher profit. You can simply tell them that the cost of materials you use to make that item has gone up, or the cost of production has gone up.
What Should Your Profit Margins Be At?
The profit margin you want to be at is around 50%. However it depends on what you are selling and how often. If this is just a hobby or your side job, then I don't expect your profit range to be 50%. Don't be one of those sellers that make great quality products but don't charge enough to make a profit because you are scared that they wont buy from you. Don't try and compete with other shops. Just because you see that they have more sales than you, doesn't mean that they are making more than you. Don't forget to get creative in your business. Remember to add new products to your shop, that way it can generate more profits for you.
Need help figuring out your profit margins? I recommend getting a calculator to help you determine what they are at.
How Do People Get Profits?
The way that people get sales is by being good at these following things:
If they didn't have good SEO, then no one would see there products. It's not just about having nice product that people want, they have to be able to find you in search. If you know your SEO is good, but you still aren't at the profit margin you would like to be in, then reexamine your listings and find out what it is that isn't attracting buyers. Most of the time you will find out the reason why people aren't purchasing from your shop is because of either your photos or your descriptions. Its important that you take clear photos of your product so buyers aren't confused as to what you are selling. Same thing goes for your descriptions. You have to make them clear and well formatted for the buyer to read. Make sure that all the information they might need is within the description. Make sure that your shop looks professional, clean and is easy to navigate.
Need help improving your profit margin? Click here to view my blog post that will help you improve them and bring in more sales!
Looking to improve your SEO? Click here to view my course on SEO, which shows you everything from what is SEO and why it is important to how to trouble shoot your listings that aren't being found.
Looking to improve your descriptions? Click here to view my course that will help you rock your descriptions!
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