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Profitability by Type of Customer

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When evaluating what's working well in your business and what's not, one of the aspects I like to view is what Types of customers are most profitable for me. If I can narrow down the types of customers that are profitable, I can streamline my workflow, simplify my marketing, become known in those industries, and increase my bottom line.

Some businesses actually use Classes to look at the different types of customers they have. An example might be Commercial versus Residential or Nonprofit versus Business. In my business, I prefer more detail about my clientele (I want to know what industry they represent). Since I find numerous classes cumbersome to review, I use the Customer Type field in QuickBooks to describe clients' industry (the QuickBooks default is how clients find you) and a Custom Field for Source of Lead. You can assign only 1 type to the customer, but you can assign a different type if you have multiple jobs for a customer. Other examples of Customer Types could be the type of residence (condo, townhome, single-family home, estate) or location (city, county, subdivision) or type of manufacturer (biotech, pesticides, cold cut meats), type of business (defense agency, non-profit, medical facility) or size of business. Think about what helps you identify your ideal client and that may give you ideas.

While you can get reports to show you Sales by Customer Type, that's not always the total picture. You may find that in some cases where the revenue is high, so are the costs. So having the ability to look at the profitability of a type of customer is helpful. If you look at the standard P&L reports, you will not see the ability to do a Profit and Loss by customer type. However, if you go through the custom reporting, you can create a report that will let you see the Profitability of Customer Type in the same format as your P & L. Here are the steps:

1. Click on Reports> Custom Reports> Summary
2. On the Display Tab, select your date range and Report Basis (cash or accrual)
3. In the Column section, select Customer Type from the drop-down menu
4. Leave Display Rows by Income Statement as is
5. You might also want to see Percent of Row - this will let you compare different Types not only by dollar amount but by the percent of your business

If you have lots of customer Types and sub-Types as I do, you might find this report will be easier to view and examine if you export to Excel.

This report does not show all the expenses in your business - just the ones charged against a customer. But this can still be very helpful - especially if you have lots of costs associated with certain types of customers.

This report can provide an interesting insight into your business. After all, it's not just the total dollar that these various types of customers bring into your business but the overall profitability of the different types. And that's really what it's all about, isn't it?

Muir & Associates helps businesses use their Intuit products more efficiently and more effectively so businesses can focus on their business and make more informed decisions. We provide sales and support services. Monica Mitchell Muir has been helping businesses with their QuickBooks products since 1996.
http://www.muirassoc.com
http://muirassoc.com/blog/

Article Source: http://EzineArticles.com/7639111

The Anatomy of High Ticket Sales

Photo by Gustavo Fring from Pexels

In this article, I am going to explain exactly why high ticket sales are more rewarding than other online business models, both financially, and emotionally.

I am going to start out by comparing my journey across Canada in an RV with an online business.

An RV is a beast of a vehicle and it takes a lot of gas to do the 5000km trek. You couldn't possibly drive an RV that far on one tank of gas.

And at the same time, you needed your RV to be in good shape to make that journey. A solid engine, good wheels, and a good driver.

It may seem strange to compare an online business with an RV trip but basically, to build an online business, you need a good vehicle (think system) and lots of gas (think traffic).

Most people who are trying to build an online business quickly realize that making money online takes a long time unless you have a high dollar product or service on the back end.

The problem for most people is to find a good high-end offer and then get enough people in front of that offer. Having a program where you can replace your current income in the first month of business is possible if you choose a good high ticket sales offer and you connect with the right audience.

Most people aren't looking at building an online business in terms of how much they make per sale, when actually it is the first thing they should have considered in their business.

In business of any kind, it's all about the profits. Online, if you don't have a high ticket offer, then those profits aren't going to happen.

Most people dabble in businesses where they can earn tiny commissions. An even when they generate traffic, they really can't change their life with it.

They say that it takes the same amount of marketing effort to make $50 per sale as it does to make a $1000 sale. Well, that's simply not true because more people will be willing to take a chance a purchase something for $50.

But the effort is not proportionate.

Let me explain...

If your goal is to make $10,000 in a month and you have something where you earn $50 per sale, you are going to have to sell 200 of them.

But if you are offering something where you earn $1000 per sale, you only have to make 10 sales to make the same amount of money.

So although it is easier to make a $50 sale than a $1000 one, you have to make a whole lot more sales to get the same results. And what you will find is that people who join you in a $50 program are probably not that serious and will soon drop out and your business will be a continuous strain to keep replacing the people who drop out.

But with a $1000 program, you not only have to make fewer sales for a bigger reward, but you also end up with people in your business who are serious about building an internet business with you.

And that is why high ticket programs are so much more rewarding, both financially and emotionally. You make more money and you surround yourself with people who are serious about online business.

If you are serious about making money on the internet or building an online business, your goal should be to find a program where you can earn high ticket sales, that you believe in and that works for you.

Once you find the right program, you can take your RV and go anywhere you want because you will have the freedom to choose what you want to do.

Rebecca Ness is a mother, a travel lover, and an internet marketer who used high ticket sales to work from anywhere and enjoy life. To see exactly what she is doing you can visit her at http://www.rebeccaness.com

Article Source: http://EzineArticles.com/8052853