Adjusting your Marketing Strategies?

2022 is coming to an end and due to the changes in rising inflation and supply chain issues, marketing strategies should be reevaluated and adjusted to best fit your customer’s needs.

Address the audience
A good place to start is with your audience. To whom will you market your business? Consider each prospect, existing customer or targeted group as an investment. Estimate your net profit after subtracting production, sales and customer service costs.

More desirable customers will buy a sizable volume with enough frequency to provide a steady revenue stream rather than serve as just a one-time or infrequent buyer. They’ll also be potential targets for cross-selling other products or services to generate incremental revenue.

Bear in mind that you must have the operational capacity to fulfill prospects’ and customers’ demands. If not, you’ll have to expand your operations, costing you more in resources and capital.

Also, be wary of becoming too dependent on a few large customers. They can use this status as leverage to lowball you. Or, if they decide to pull the plug, it could be financially devastating.

Confront the pricing conundrum
Another key factor to address is pricing. It’s a tricky balance: Setting your price low may help to attract customers, but it can also minimize or even eliminate your profit margin.

What’s worse, inflation has thrown a wild card into this conundrum. Your expenses have likely risen, which could very well mean you have to adjust prices upward. But if customers and prospects get the impression you’re raising prices unreasonably, business could suffer. Your marketing strategy — specifically, communicating price adjustments to customers and prospects — is key to mitigating this risk.

In addition, think about what kind of payment terms you’re prepared to offer and promote in your marketing materials. Sitting on large accounts receivable can strain your cash flow. Strive to establish timely, feasible payment schedules that allow you to sustain your operational capacity and support the bottom line.

Get started
Of course, there are many other aspects of a marketing strategy to consider. But scrutinizing your customer/prospect base and thoroughly analyzing your pricing are good places to start. Contact us for help evaluating the cost impact of marketing, as well as calculating viable price points for your products or services.

If you have any questions about marketing strategies, please contact your Rudler, PSC advisor at 859-331-1717.

RUDLER, PSC CPAs and Business Advisors

This week's Rudler Review is presented by Maddie Schweitzer, CPA and Jane Frances, CPA.

If you would like to discuss your particular situation, contact Maddie or Jane at 859-331-1717.

As part of Rudler, PSC's commitment to true proactive client partnerships, we have encouraged our professionals to specialize in their areas of interest, providing clients with specialized knowledge and strategic relationships. Be sure to receive future Rudler Reviews for advice from our experts,  sign up today !

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