Increase The Value Of Your Transaction
In this section of our business growth series, we focus on increasing the value of your transaction. This is simply increasing the amount that your customer or client spends with you when they come to buy.
Let’s look at this in some more detail.
You can charge people more – simple as that? Well that is one great way to increase the value of the transaction but not the only way. McDonalds will tell you that turning it into a combo is just what you need. Or adding a cookie at Subway. By adding additional offerings, they are increasing the value of the transaction for the customer. Think about how you could do this in your business and don’t be shy to alert customers to the fact that you have the opportunity to buy more – Subway are still asking if you’d like a cookie even though you walk past them on the way to payment.
In your business you could even ask current customers what they’d like you to be able to provide – you might be surprised with the ideas they have for you.
So #whatsNext?
The above should seem easy enough and probably make a lot of sense but to benefit, you need to commit and make some time to work on your business to discover some of the opportunities that are sitting right in front of you.
If you need help to do this, we’d love to be a part of that. Contact Us and we can help you execute on what may only remain as thoughts.
What ever you choose to do, we hope you have your best financial year to date.
![From what we have seen, business owners SHOULD NOT blindly pay their May tax without advice as to whether their profitability warrants it. Why? Because, 1/3rd of our clients won’t be paying tax in May. Accountants are on the front line of the economy and we have real time financial data. At the time of writing this, it is less than 10 days after the end of the financial year, and we’ve mostly finished reviewing the profitability of a good cross-section of the NZ economy: construction, engineering, marketing, e-commerce, services. All sorts. Here’s some tax insight that might help you understand what’s happening in the economy. AND, hopefully understand how tax works for many of you businesses owners. For some background, a lot of NZ SME’s pay tax in August, January and May to stay current with tax. This is loosely based on their profitability of the year before (2023FY ended 31/3/2023). This means that when they get their accounts done, they have hopefully cleared taxes on profits for the current financial year (2024FY ended 31/3/2024). We don't just tell our clients to pay tax based on last year. Every year is different. We review our clients' profitability throughout the year and by this final payment on the 7th of May, we have a really clear insight as to how profitable the financial year was. The 2 common themes are: 🔸 A lot of businesses don’t even need to make a payment in May because their profitability will be lower than last financial year, so they have less tax to pay. They've paid enough tax in August & January. 🔸 Some of those who do need to pay tax (even at a higher rate) are struggling to collect the cash (income from the work they’ve done) so they are battling to see how they can make the payment.
One of the tricky things for a growing business is that IF they don’t collect the money for the work they do in a timely manner, they will always struggle to pay their tax. Why? Because they’ve done the work, sent the invoice which recognises revenue and profit, BUT they haven’t turned it into cash in their business. [Continued in comments...]](https://nextadvisory.nz/wp-content/plugins/instagram-feed/img/placeholder.png)
