Featured Coaching Training: 17 Steps to Maximize Your Profits
Many business owners think you need to increase sales substantially to make more money. However, there’s another way to make more money, which is to maximize your profit margins. Here are 17 tips to make it happen!
Featured Coaching Excerpt - Notes & Transcript, Part 1
Lesson Nugget: Step 13: Potentially Go Full Throttle with a Membership Model.
Notable Quotable: "If you never want to be criticized, for goodness' sake don't do anything new." -Jeff Bezos (Founder of Amazon.com)
Editor's Note: Elephant In The Room Men's Grooming Lounge caters to the modern man who is looking for an experience not just a haircut. At Elephant in the Room we are committed to supporting the mentorship of the next generation of men and boys through the "It Starts With One" campaign.
Ask Yourself: What is it that I want concerning my business? Is a membership model ideal for my business?
Lesson NUgget: Paid membership models keep the money coming in to one channel of your business, even during seasonal or unexpected lean months.
- Step number 13, potentially go full throttle with a membership model. Clay, I'm gonna read them a notable quote over here by Jeff Bezos, the founder of Amazon, regarding this step number 13. He says this, If you never want to be criticized, for goodness sakes, don't do anything new.
- Well, you're in an industry right now some people watching this, right? And you're in an industry where no one's ever done a membership model.
- And, so, to Jeff Bezos' point if you do something new people will criticize you. So, we're in the haircut business. One of the companies down there. It's a men's grooming lounge. So, we introduced a membership model. One of the first people to do it. People thought, you mean if I wanted to get my hair cut here right now, I can't do it if I'm not a member? Well, yeah. I mean, that's basically the deal. So, people were walking in going, hey, I just walked in. Bing, bong. You hear the door opoen. Bing, bong. Hey, I'm here to get my hair cut. I wanted to see if you guys had availablitity. We're like, it's a membership only deal. How familiar are you with the way we work? Well, I'm not really. We do membership only that way there's no waiting time. Let me go ahead and get your name and number. Let's set up a time to meet tomorrow? They're like, I can't get it now? No, not really. I can't get my haircut right now? We're always booked out. I mean, no. People go... Well, I mean, seriously. It happens. It's always weird. In our office people ask me this, Stewart. Have you noticed how we have a lock on the door so it automatically locks?
- Yeah, I've noticed that.
- A guy the other day freaked out at me. I love it. I love he's so mad.
- You, Sir who are mad, I am glad you're mad because you're demonstrating this point. He goes, do you realize I was out there for like, 20 minutes and no one helped me? I was like, the way we work here is we're appointment only for our consulting company. And the idea is that we don't have random people come in. But I was out there for 20 minutes, he says. Okay. At no point would I answer it until you have an appointment. Do you realize how much money you're missing? He says, Do you realize how much money you're missing out on?
- [Stewart] He tried a super move on you.
- He came through the back door. You know by the river? He came through the back door. He tried to come through where we have all the stuff blockaded. And he was like, dude, do you realize how much money you're missing out on?
- I'm like, probably so, but I do appointment only. It's hour long meetings. He's like, I had heard about you guys through the Tulsa World and I know that I need you guys to help me with my business. I can tell ya, I'm very frustrated. I'm going to use somebody else because you guys made me wait for 20 minutes. I'm like, well, you did not set an appointment. All I'm saying is he's criticizing me. I don't give a crap because my goal is not to have a walk in consulting company. Now, if I change my model and my goal is to have a walk in consulting company I would care. All I'm saying is thrivers ask youself what is it that you want, and potentially with your life goals maybe a membership model is right for you. Maybe it's not. But if a membership model is right for you, where you want that consistency of revenue. Maybe you're a fitness guy. Maybe you're a haircut guy. Maybe you're a plumbing guy, maybe you're a roofing guy. Maybe you say, plumbing membership? Are you kidding me? Mabye I say to you Stew, if you want me to come and handle any of your plumbing problems throughout the year it's $500 a year and I come out and handle as many as you have. Maybe that's a valid offer. I'm a plumber, maybe $500 a year membership and you get unlimited plumbing services. Maybe you go, that's insane, that's not a good deal. I'm just saying to you is you need to make sure that we are building a model that makes sense to us. Now, Stew we're one of the few consulting companies that does a membership model where people pay a flat amount?
- How is it differnt than a contract model? Because you're probably used to it. You've probably seen over the years when people pay... agree to a contract. Talk to me about the differences real quick. I just want to hear your opinion on that, because you've seen both models. What's the difference with a contract? Hey, you're agreeing to pay X amount per month, here's the contract. How is that different from what the membership model, in your mind?
- Most design, marketing, branding, PR companies are not that way. It's a project by project kind of basis. One and done is the phrase you'll hear a lot. It's human nature that you earn that money to a point. You do that project and then you just don't even think about it again. That customer doesn't get the value long term. They don't stick around long enough to see the results and do the pivots that they need to make on a marketing campaign. So, you need to build a long term relationship. That's what you are building with your clients.
- That's why we charge significantly less than what a typical company charges. But they're long term. Cause I'm just saying, as a marketing guy when someone hires me to help them grow their company, as you and I know we could sit in a room and build the best website ever, but we got to make some pivots, gotta make some changes. Membership model, something to think about. Back to you Jose.
- You've made it this far. We have been on point number 13 on how to maximize your profit margins out of the 17 steps. So, stay tuned. We have three more steps, and they're exciting.