Do You Want to Increase Your Sales?

November 2000
by Brian Jud

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Are you sure that “increased sales” is really what you want? It’s relatively easy to achieve an indefinite objective such as that, but your business will become more successful in the long run if you can be more focused. Instead of simply trying to increase sales, restate your objective to “increase your cash flow,””build incremental profits” or “deplete a large inventory of books.” The distinction is important because each objective requires a different strategy-particularly when you consider the element of time. The journey to achieving any of these goals is accomplished by manipulating certain marketing tools over which you have complete control: the price, distribution, promotion, and even the physical characteristics of your books. The way you combine and execute these variables will impact your cash flow, profits, and unit sales. For example, a price reduction may lower your inventory in the short term but have lingering, negative impact on your profitability. And a reduction in your promotional budget may increase short-term cash flow but deny long-term revenue. Here are examples of strategies to reach a more focused objective.Objective 1: Increase your cash flow. Cash flow is your ability to generate cash from operations, after deducting expenses from your revenue. Publishing companies that can generate cash can sustain higher growth rates. This can be accomplished in a two-step process, the first of which is to improve gross margins. One way to d…IBPA Members – Click here to view the full article (login required).

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