The Australian Small Business Blog

The Australian Small Business Blog

This Blog has been providing a Forum where Australian Small Business Owners can exchange Ideas old & new and get Advice from experts in Australia on how to Improve their Businesses through better Business Management, Planning & Strategy, Business Systems and Marketing Strategy and Systems for over 10 years. They will also learn about the Small Business Best Practice Benchmarks that are critical for their success. Our Ultimate Objective is to help Australian Small Business Owners take their Business to the Next Level and achieve their Goals whatever they may be.

Monday, September 21, 2020

Smashing the Link between Cost and Price



  by Dr Greg Chapman

Businesses often use simple formulas to calculate their prices. Usually  based on some on some mark-up, so in a store all items might be priced with a 60% mark-up on cost with the 60% covering wages, overhead, and hopefully profit.

In a businesses where prices are easy to compare, this practice is rife, but for more complex services or businesses which package their products in ways that can’t be compared, this restraint need no longer apply.

Monday, September 14, 2020

The Third Profit Driver – Increasing Average Value per Sale



by Dr Greg Chapman


In an earlier article I described The Five Profit Drivers marketing system. The third of the Five Profit Drivers is Increasing the Average Value per Sale.

When they ask: “Do you want fries with that?” McDonalds knows that about a third of their customers say yes. The marginal cost of the fries is small. Their overhead costs, which are quite considerable, the restaurant, staff and equipment have not changed because of this additional sale. The cost of the fries, the potatoes and packaging, is a small fraction of the selling price of the fries, so almost the whole price of the fries goes straight to the bottom line, all achieved by asking a simple question at the time they were making a sale.

Monday, September 07, 2020

Ad of the Month - The Elephant in the Room


by Dr Greg Chapman


What’s the biggest objection people have to purchasing any product or service in your category?

Does it work? Will it really save me time? Will it really save me money? Will it really make me money? Can I trust it? What if it breaks down? Is it really value for money?

What is the biggest objection in your industry? In the following ad, the question is data privacy.

Monday, August 31, 2020

Learn Your Lines and Double Your Sales



by Dr Greg Chapman




How well do you and your team deal with your current and potential customers? Do you leave contact with your customers to chance, or do you have a set, uniform approach, especially when dealing with enquiries from those who haven't dealt with your company before?

What questions are you asking? How do you respond when they ask “How much do you charge?” within seconds of opening the conversation? How are you keeping them engaged, even after the conversation has concluded?   More...
 

Monday, August 24, 2020

Why it’s a Mistake to Use Turnover as the Measure of Marketing Success



When most small business owners are asked what they want to achieve with their marketing, the answer is almost always is “More Sales”. To increase their Turnover. But that answer is too simplistic and can result in sub optimal outcomes especially when looking at the bottomline results. And the bottomline is your Net Profit. 
 
There are three key reasons to focus on Net Profit rather than Turnover.

Tuesday, August 18, 2020

The Second Profit Driver – Increasing Conversion to Sales



by Dr Greg Chapman


In an earlier article I described The Five Profit Drivers marketing system. The second of the Five Profit Drivers is Increasing Conversion to Sales. 
 
Sales should be considered as a process like any other key part of a business. It is in fact the most important part because without sales there is no business. This step in the Five Profit Driver Marketing Model converts the leads created with the first Profit Driver into sales. 
 
At this point in the marketing process, the prospect has called you, they have walked into your store, or you have the appointment with them. While the types of sales processes can appear quite different in different businesses, every sale goes through seven steps. For different businesses, some steps might appear to be almost missed, while in others, there might be a very long time spent within a single step.

Tuesday, August 11, 2020

Ad of the Month – Be Easy to Deal With


by Dr Greg Chapman


Ever noticed that some companies don’t want to talk with their customers and make it as difficult as possible to contact them, or force you to speak with an offshore call centre where English is not their first language? 
 
How refreshing then that this company lets you deal with them the way you want. In this ad we see two common preferences in contacting a business. One which would be the preferred option for younger people and the other for the older generation.

Tuesday, August 04, 2020

Provide a Taste Test



by Dr Greg Chapman




There can be many reasons why people don't buy. But probably the biggest is that they don't have confidence that a business will deliver. That the service will be as promised, or the product will actually work.

When people make a purchase decision, they take a decision to change their life in some way. They have actually survived their whole life without buying from you, and now you are asking them to change.

They may already have another supplier of your products and services, which while they may not be fantastic, they do the job. Or they have lived up to now, with the problem you want to fix. So if they buy from you, they will have to change.   More...
 

Monday, July 27, 2020

The First Profit Driver – How to Increase Your Enquiries



by Dr Greg Chapman


In the last post I described The Five Profit Driver Marketing System. The first of the Five Profit Drivers is Increasing Enquiries.

What marketing strategy are you going to use to communicate with your customers and entice them to contact you? There are really only four types of enquiry generation marketing strategies.

Tuesday, July 21, 2020

How to Double Your Profit with the Five Profit Drivers



by Dr Greg Chapman


Have you ever seen a business that has doubled their sales apparently overnight? Have you wondered what is the one thing they did to achieve that result? The chances are they did a number of things which when multiplied together gave the end result. In all likelihood, they understood and used the Power of Leverage.

Let’s see how that works. Consider this example.


Wednesday, July 15, 2020

Lead Generation vs Sales Conversion – What’s Your Priority?



by Dr Greg Chapman


So you want more sales? I think I may have heard that once or twice before! Under my Five Profit Driver model of marketing there are 5 strategic areas on which you can focus:


• the Number of Enquiries
• the Conversions to Sales
• the Average Value per Sale
• the Number of Times a Customer Buys from You
• the Gross Profit Margin per Sale

However, nothing happens until you generate the enquiry. Therefore, should getting more leads be your priority?

Not so fast.

Monday, July 06, 2020

Ad of The Month – Safety


by Dr Greg Chapman


With retail outlets slowly reopening, we constantly hear about the safety measures the businesses are taking. The messages are much the same and don’t do much to retain your attention. In this French Ad from Burger King, they present their safety massage like an airline safety message with do’s and don’ts.

While the ad is mostly in French, you can easily get the gist of the message.

Monday, June 29, 2020

You can run half as fast, but you must run



by Dr Greg Chapman




When seeking to improve their marketing game, business owners often look to the best and feel daunted. They believe “I can never be as good as top professional marketers. I don’t have the money or the knowledge to compete.”

You really don’t have to be the best. Consider the story of the two trekkers in the jungle. As they were walking they heard a huge roar. When turning around they saw a very large lion coming towards them. They both started to run, then one of them stopped and changed his jungle boots for runners. The other trekker said: “You will never outrun the lion.”   More...
 

Monday, June 22, 2020

Small Business Strategy Case Study- A consultancy whose website was a ghost town



by Dr Greg Chapman


As part of my service I provide a Complimentary Business Evaluation. From my files, here is a summary of a case study of a consultancy that was successful in generating word-of-mouth business but they were looking for a faster way to grow and their brand new website was doing nothing for them.

Wednesday, June 17, 2020

Understanding Brands – A Steve Jobs Masterclass



by Dr Greg Chapman


Here is another masterclass from Steve Jobs. This was recorded quite a few years ago, and really explains how a brand should be defined. I’ve never seen anyone explain it so simply and so well.

Thursday, June 11, 2020

Addicted to Profitless Turnover



by Dr Greg Chapman


If you are a business owner, you are probably as busy as a one armed paperhanger. You probably are juggling many balls. You may have lots of business, but you feel at the end of the day, you have little to show for it. You may not even be paying yourself a proper wage, let alone have a decent profit to show.

While you may be busy, is every sale profitable? When you take apart your Profit & Loss statement, how much profit is there really?

Wednesday, June 03, 2020

Ad of the Month - Reopening


by Dr Greg Chapman


With the easing of restrictions many businesses are looking at how they get people to step back into their pre-lockdown habits. This funny musical commercial will strike a chord (pun intended) to many.

I’ve set this up to start halfway through because I don’t like long ads, but the whole thing is worth watching.

Wednesday, May 27, 2020

Is Chris Hemsworth Too Expensive?



by Dr Greg Chapman




What man wouldn’t want a body that looked like Chris Hemsworth’s? Well, apparently you can get one for just US$29.99 /month with his Centr App. Seems a reasonable deal, but even so, people are complaining that’s it’s expensive compared with other training programs, without Chris, at under US$20 /month. Especially since there are literally hundreds of exercise and diet videos free on YouTube, so why would you pay US$29.99 for Chris’ App?   More...
 

Thursday, May 21, 2020

How to turn Your Business Into a Profit Machine and make it a Saleable Asset



by Dr Greg Chapman


Are you tired of working backbreaking hours in your business without getting the rewards you deserve?

 For most business owners, working harder is not the answer. They are already putting in the hours. In fact working less hours is a better approach, if those hours are spent doing the right things.

There is a process that business owners can follow to achieve their goals. Here are the 7 Steps to turn your business into a profit machine that runs without you:

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Dr. Greg Chapman is also the author of
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The Five Pillars of Guaranteed Business Success

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