Part 3 of a 5 part series

Warning Signs:

• Falling profits (before owner's compensation).
• Falling owner's compensation.
• Falling or stagnant sales with falling profits.
• Rising expenses.
  • Cost of goods sold.
• Decreased gross margin.
• Significant adverse deviations from budget.

Steps to Improve: MARKETING

• Adjust prices to maximize profits, not sales.
• Know when to discount; discount to sell but don't discount yourself out of business.
• Re-evaluate the effectiveness of purchase and cash discounts.
• Keep tabs on your competitors' prices.
• Make credit easy using plastic (credit cards) or direct third party finance.
• Stretch your advertising dollars.
• Direct your advertising dollars at the best sales prospects.
• Evaluate the effect of what you do.
• Increase advertising impact; copy content, image, illustrations.
• Use copy that sells. Don't neglect the headline.
• Use sales to your advantage. Find excuses to hold sales.
• Diversify your direct sales channels and media.
• Package for prestige; add perceived value.
• Package for utility; add value - utility of package or packaging.
• Packaging is more than wrappings or containers; presentation, convenience, uniform image, labeling, hope, utility.