Many business people are addicted to more. More products, more services, more locations, more choices… all of these allegedly leading to more profits.
In many cases, more means additional revenue. The irony, of course, is more can also mean more overhead, more headaches, more personnel, more mistakes, and more confusion.
Just in a line at a fast food operation and watch customers in front of you. You’ll see their heads begin to spin at the vast array of choices offered for a simple lunch. When out to dinner, there is nothing better than a competent waiter who not only gives you the specials, but recommendations for the dishes that he/she or customers enjoy the most. The waiter is softly taking some choices off-the-board.
In the wedding industry, over time, many wedding businesses add services and products to the point of customer confusion. Alternatively, companies simply get larger to the point of inefficiency. Is having 8 photographers better than having 3? Is having 15 disc jockeys better than having 8? It depends.
Depends on what? On the profitability of the last DJ or photographer. Not to mention the personnel juggling, clerical support and other complications brought on by more.
Entrepreneurs are, by nature, idea people. We look for opportunities to expand, grow, and enhance.
Just for a moment, knock it off!! Instead of looking at how to grow, examine how to shrink. What services or products are you offering that generate revenue, but not profits. Is your third sales office generating a profitable level of sales? When you crunch the numbers, is the first two-thirds of your capacity (people, products, office) generating more than 90% of your sales? Is that last 10% of sales profitable, at all?
If you reduced your availability (capacity) would your pricing be stable… or even go higher?
Think of it as cleaning out your closet. Are there things that don’t fit any more? Are out of style? Are just creating such clutter that you can’t even see all the choices?
Chances are such a circumstance is creating confusion within your company, as well as your contacts, customers, and prospects.
Eliminating unproductive products, services, and yes…. people, is addition by subtraction. You will recapture some time, ease, and perhaps be more productive with less.
So ask yourself, what really needs to stay, and what has run its course and should be eliminated. After you’ve asked and answered that, please comment and let me know.
The Wedding Marketing Authority
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