You’re in business to make money. Why else would you devote time and energy into a venture if you aren’t making a profit? Deciding what goods and services to offer is driven by a few factors. Of course, there needs to be a market for what you are selling, and people need to know where to find you, but making the ever-evolving decisions on what to sell is driven by your income. Tracking what people are buying helps you determine what goods and services you want to develop for the future.
You might have a wide variety of goods and services that offer wonderful benefits to the marketplace, but your profits help you determine which mean the most to the marketplace. Your top selling goods and services are an indicator of what your customer is looking for. Tracking your sales and taking notice of what offers generate the most consistent income can help you save time and money. Here’s how-
Tracking income reflects the market
Tracking your income helps you evaluate what goods and services are the most popular with your customers. From there you can determine what it is about these goods and services that’s most appealing. Is it the problems they solve? Their price point? Your top selling goods and services are a good indicator of what your market is looking for.
In the same way, tracking your income can alert you to what products aren’t doing well with your market. It helps you analyze why they aren’t selling. Are they not solving a problem in your market? Is their price point too high or too low? Checking your income and tracking what’s selling…and what isn’t, can help you make better choices about your offers.
Tracking income helps with proper planning
Most businesses conduct annual audits of spending and create plans for a new fiscal cycle. Tracking income can help you determine which products you want to keep, which you want to discontinue and what products, goods, or services are a natural enhancement to your best-selling products and should be developed.
Knowing which income sources have been the most prolific can help you with marketing. Funneling marketing dollars towards your best-selling products makes sense. Making sure you know what revenue streams produce the highest income helps keep a laser focus on increasing your profits.
Tracking your profits helps you determine which goods and services your market loves and where you can expand on those products to enhance the client’s experience and your income. Make tracking your income a consistent part of your strategic planning and watch your profits soar.