There are several "REASONS" that overlap between Reasons To Have A Business Plan and the Critical Errors Blog from last week. So for brevity here are the new ones: Number 4
4) Determine most profitable marketing
‘If you can't Measure It, you cannot Manage It' famous words from a famous management guru Peter Drucker. Say those words aloud and think of your own business. Can you tell which activities you do create the most appointments and which activities are the most profitable? If you can't then most like you are just letting business happen versus focusing on the best activities in your proverbial arsenal of skills. Think of the 80-20 rule, and then ask ‘what activities do I do that generate me 80% of my business?'
Ask yourself this question the next time you close a transaction: "How much did I really make from this transaction after all cost are taken out?" It is impossible to determine what marketing items are really profitable useless you know your costs.
Example: If it takes 1000 postcards to your farm to get one transaction that may be great if you are sending $1 cards to homes with an average price of $1,000,000 but if your average sale price is $99,000 does that 1000 postcards seem so great?
Know the costs of your marketing and how you can maximize the profit from your marketing efforts.
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