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You are a very large company in a very competitive market place selling pretty much a c*mmodity product (sorry, that word is banned from my vocabulary), your competitors are just itching to steal your customers, the press are giving you a hard time and worst of all the c*mmodity product you buy to sell on is rocketing in price.
A doomsday scenario? Surely your profits are going to take a massive hit?
Absolute rubbish!
British Gas were in this sort of position and they have just announced profits for the first six months of this year were up 98% on the same period last year - that’s over a quarter of a billion pounds more profit in six months!
How did they do it?
By following the two main rules (there are several others) of how to increase profits.
Rule number 1 Increase your prices whenever possible
Rule number 2 Blame someone else; “Don’t blame us, we are in the grip of forces that cannot be controlled!”
But they’ve done more than that. If you read their press releases they say they have actually reduced their customers’ bills. Don’t believe a word of it! Some of them maybe, they’ve also been clever about creating packages but the basic price of gas has been increased, if it hadn’t they would have seen profits crashed.
But even better, they have brilliantly managed to get the market to expect price rises now. Everybody knows that prices will rise, they just don’t know by how much.
So they are in a very strong position to make even more money.
So much for the Doomsday scenario!
Can you be as successful as British Gas? Possibly not.
Can you be more successful than you currently are? Almost certainly yes (but you might need a bit of help from specialists!)
Martyn Swan
martyn@profitbuilderint.com
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