By Jeff Kumekucha
Times are pretty hard for entrepreneurs in the country and getting harder. With the drastic weakening of the Kenya shilling many have found that suddenly their profit margin has been eroded. But they can’t dare just increase prices because doing so will chase away your customers.
And yet if they do nothing they will end up making losses, in some cases huge losses.
So what to do?
The most viable option for you is to squeeze out more profits from your existing customers or from your existing business without increasing prices.
How do you do this exactly?
Let us deal with a specific example here so that the lesson sinks in deep.
A few years back Nation newspapers were faced with the same problem. Prices of fuel to transport their newspapers had risen dramatically at a time when the price of their imported newsprint had shot up because of the weakening of the Kenya shilling. A less creative business would have simply raised the prices of their newspapers and lost hoardes of customers in the process putting the business in a worse situation.
Instead what the company did was to find a very creative way to squeeze out more profits from their business. Now you need to understand that the Nation newspaper is the top seller in East and Cantral Africa because of their distribution system which takes the newspaper to every corner of the country and beyond. The big problem is that when the van that delivers newspapers to a certain place comes back, it returns empty and yet still costs the same it cost on the first trip. Now if only they could figure out a way to make the return trip profitable.
Nation courier services was created. The same can carrying the newspapers would now carry packages and letters and deliver them on the newspaper route. On the way back the same van would carry more packages and letters coming from the newspaper route and destined for the capital city where the newspapers head office is. Pure genius and it worked like magic.
Actually what happened in this case is that the company started a subsidiary business with zero capital. They simply used their existing infrastructure and vehicles for delivering newspapers daily to start a brand new business.
Can you apply the same trick to your business to squeeze out more profits from your existing infrastructure?
Here are a few examples to help you come up with that magical idea that will lift your business to the next level.
Read part 2 of this article.
Even before you read Part 2 you can read about many more specific examples from the Kenyan market and beyond that will help you find hidden profits in your business that you never thought existed. It does not matter what kind of business you are in, whether it is a website or small stall in the market or a high tech computer company, these ideas will impact on your profits and bottom line. Get my regular Free Hidden Profits report NOW.