How to Increase Profits Without Raising Your Prices

This article is an excerpt from the Shortform book guide to "The Personal MBA" by Josh Kaufman. Shortform has the world's best summaries and analyses of books you should be reading.

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Do you want to amp your business’s bottom line? What are the different ways to improve profitability without raising prices?

Raising your prices in an effort to increase profits is a dangerous move that has a high chance of backfiring. Unless your business provides a product/service of exceptional value, you risk losing a significant proportion of your customer base to competitors. Before you raise prices, you may want to consider other ways of improving your business’s bottom line.

Here’s how to increase profits without raising your prices.

3 Ways to Increase Revenue Without Raising Prices

Since businesses rely on profits from their sales to continue running, they often raise prices in an attempt to quickly generate more revenue. However, this isn’t the only way to increase your profits. In his book The Personal MBA, Kaufman explains how to increase profits and sales revenue without increasing prices:

1) Complete single transactions with more customers: This involves attracting and converting more potential customers into paying customers for a single product or service.

(Shortform note: The most effective way to complete more single transactions is to expand your marketing, sales, and distribution network. This increases your online presence and allows you to cover more geographical locations—thus attracting a wider range of customers. Since many businesses don’t have the resources to expand their network, they often partner with external marketing agencies, vendors, and distributors to manage customer relationships on their behalf.)

How to Increase Profits Without Raising Your Prices

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Darya Sinusoid

Darya’s love for reading started with fantasy novels (The LOTR trilogy is still her all-time-favorite). Growing up, however, she found herself transitioning to non-fiction, psychological, and self-help books. She has a degree in Psychology and a deep passion for the subject. She likes reading research-informed books that distill the workings of the human brain/mind/consciousness and thinking of ways to apply the insights to her own life. Some of her favorites include Thinking, Fast and Slow, How We Decide, and The Wisdom of the Enneagram.

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