So I went and did it.
I went and ate McDonald’s yesterday.
And, as always, afterwards I hated myself for it.
It’s funny how I’ll get a craving for some Mickey D’s knowing that afterwards I’ll feel bloated and gross.
And yet, every so often, I’ll take that artery-clogging plunge.
Maybe it’s the convenience (eleventy-bajillion locations and counting).
Maybe it’s that their food’s relatively cheap.
Maybe it’s the addictive chemicals in the grease (although, funnily enough, their fries are nowhere near as good as they used to be, now that they’ve “cleaned them up” by cutting out the trans-fats).
Whatever the case, one thing that isn’t queasy-inducing about McDonald’s is their ability to use systems to bring in a LOT of money.
24 hours a day.
(Notice I said “systems”. The systems McDonald’s has in place are why McDonald’s franchises have been so successful. Having proven systems in place takes a lot of the guesswork and risk out of the picture. It’s as close to “stupid-proofing” your business as you’re likely to find.)
There are a lot of lessons to be learned from the business that Ray Kroc franchised into the billion-dollar belly fattening beast we all know today.
But there’s one easy tactic you can swipe from them and start using today: upselling.
Just by asking customers if they want fries or a drink with their meal, McDonald’s boosts their average purchase size and probably put generations of potato farmer’s kids through college.
This seems like such an obvious thing, but so many people don’t do it, even though it could put more money in their pocket almost immediately.
You sell 10,000 widgets a year, at an average price of $100 per widget, so your average revenue from widgets is $1M per year.
If you boost that average purchase price to $150 per widget by adding an upsell to each purchase, your average yearly revenue from widgets jumps to $1.5M per year.
Just by adding an upsell, you’ve boosted your average yearly revenue by half a million dollars.
Pretty sweet, huh?
Lots of people think that the only way to grow their businesses is by doing something dramatic or revolutionary.
But really, it’s little tactics like adding an upsell that can have a huge impact on your profits.
But you have to know how to implement them the right way, or you can end up shooting yourself in the foot (for example, you’ll make way more upsells if you have a proven system to find out exactly what products your customers are itching to buy, instead of just slapping any old offer up there).
One of the best guys in the biz when it comes to growing the hell out of people’s profits, is Rich Schefren .
Rich coaches business owners and helps them get more customers, sell more, and make a lot more money than they currently are. In fact, he’s increased revenue for 25 of his coaching clients by 142 million dollars in 2 years.
And you’re in luck, because it turns out he’s hosting a free webcast coming up, where he’ll share strategies he’s used:
- To turn a failing clothing store into a million dollar business.
- To build the largest chain of hypnosis centers in America.
- To grow his own company, Strategic Profits, into a 7 million dollar business in 18 months.
Well that’s it for me today. But remember, don’t sleep on the power of little hacks. They can be a lot more powerful than you think. Just ask Ray Kroc (well, you can’t, because he’s not alive, but you know what I mean).
Till next time, don’t eat too many hot apple pies.