The Only Three Ways to Increase Revenue
There are only three ways to increase revenue. Most professional services providers focus on just two of those ways, even though the returns on those methods are smaller and less certain.
John Ray: [00:00:00] Hello. I’m John Ray on The Price and Value Journey. There are only three ways you can increase your revenue. Only three. You can sell more of your stuff to new clients, and that’s more volume. You can sell more of your stuff to existing clients, that’s also more volume. Or you can raise your prices.
John Ray: [00:00:23] Now, those are your choices if you want to increase your revenue. That’s it. So, how much of your time, money, resources, and mindshare are you giving to each of these three? Two of them have to do with more volume. One of them, of course, has to do with your price.
John Ray: [00:00:44] My experience with most solo and small professional services firms is that they spend a disproportionate amount of resources on the first two, the volume choices, but give extraordinarily little regular attention to what opportunity they might have to modify prices for the better.
John Ray: [00:01:06] This choice of resource allocation is illogical. Acquiring new clients requires expenditure of marketing and sales resources, and there’s a delay in the return received on that investment, and that’s assuming there is a return. Price changes, on the other hand, have a nearly instantaneous impact on the bottom line. The effort needed to implement them is invariably much less than a fresh marketing or sales initiative. Sometimes the cost of implementing a price increase is near zero.
John Ray: [00:01:44] So, think about your resource allocation around growing your revenue. What is your allocation? And is it too heavily weighted in one direction?
John Ray: [00:01:56] I’m John Ray on The Price and Value Journey. Past episodes of this series can be found at pricevaluejourney.com or on your favorite podcast app, where you can subscribe, if you’re not already subscribed. And I would be honored if you would subscribe. If you’d like to send me questions or comments, I’d love to hear from you, firstname.lastname@example.org is how you can reach me. Thank you for joining me.
About The Price and Value Journey
The title of this show describes the journey all professional services providers are on: building a services practice by seeking to convince the world of the value we offer, helping clients achieve the outcomes they desire and trying to do all that at pricing which reflects the value we deliver.
If you feel like you’re working too hard for too little money in your solo or small firm practice, this show is for you. Even if you’re reasonably happy with your practice, you’ll hear ways to improve both your bottom line as well as the mindset you bring to your business.
John Ray, Host of The Price and Value Journey
John Ray is the host of The Price and Value Journey.
John owns Ray Business Advisors, a business advisory practice. John’s services include advising solopreneur and small professional services firms on their pricing. John is passionate about the power of pricing for business owners, as changing pricing is the fastest way to change the profitability of a business. His clients are professionals who are selling their “grey matter,” such as attorneys, CPAs, accountants and bookkeepers, consultants, marketing professionals, and other professional services practitioners.
In his other business, John is a Studio Owner, Producer, and Show Host with Business RadioX®, and works with business owners who want to do their own podcast. As a veteran B2B services provider, John’s special sauce is coaching B2B professionals to use a podcast to build relationships in a non-salesy way which translate into revenue.
John is the host of North Fulton Business Radio, Minneapolis-St. Paul Business Radio, Alpharetta Tech Talk, and Business Leaders Radio. house shows which feature a wide range of business leaders and companies. John has hosted and/or produced over 1,300 podcast episodes.