Five Business Chasis (Brad Sugars)


Do you want to increase revenue and your business profit? Here is the way…

Here is the simple way according to experience of some business people based on world class business guru theory. So, it’s not only citation from the book, but truly has implemented by them. The theory is not from difficult academic marketing books that for big companies used to, because the topic here just for small until medium scale of business. Finally I found simple marketing theories that called "street smart" which is more down to earth, cheap, and easy to use.

The theories come from some mentors like Tung Desem Waringin, Brad Sugars, Jay Abraham, Jay Conrad Levinson and Roger Konopasek. They are well known as "street smart" business guru.

From the mentioned figures above, Brad Sugars theory is more complete and systematic. It’s possibly that Brad Sugars also complete others figure theory, such as Jay Abraham, because lots of resemblance among them.

So, how to increase revenue and profit to your business? Here is the theory of Brad Sugar, well known as Five Business Chasis

1. Increase your Prospect (Leads)
It can be done by advertising, open new branch, spreading brochure, join exhibition, etc. For example, you open a store in a mall or trade center. The average of not in purpose visitors to your store are 1000, it means your leads are 1000. Then, you spread brochures in front of mall gate that invite visitor come to your store. Let’s say visitors come to your store from spreading brochure are 100, so your leads become 1100. The more visitors come to your store, the more leads that you can prospect.

2. Increase your Conversion
Conversion is total percentage of leads that finally buy your products. Example, from 1000 leads visit to your store there are 250 visitors buy your products. It means the conversion is 25%. How to increase the conversion? It can be done such as provide guarantee, after sales service, free delivery or shipping, etc.

3. Increase total Transaction
Total Transaction is amount of transactions in your store each day, each week, or each month. How to increase your transaction amount? Do various ways so that your costumer more often shopping in your store, such as provide gift, bonus, point, voucher, etc.

4. Increase your average transaction amount
From the transactions above, how much is the average? Example your store make revenue Rp 1.000.000,- per day with total transactions is 50, so the transaction average is Rp 20.000,-. How I can reach it? Have you eat at McDonalds? Every time we pay, the waitress always asks: "Do you want french fries Sir?" If we answer yes, she will ask: "large or medium?" If we don’t want french fries, she will ask again: "Ice cream Sir?" or "try waffle Sir?" and so on.

5. Increase your profit margin
Example, your base price product is Rp 750,-. You sell Rp 1.000,-, so your profit is Rp 250,- and your profit margin is 25% (Rp. 250 : Rp. 1000). Then, you increase the price Rp 100,- become Rp 1.100,-, so your profit margin become 32% or increase 7%.

Let’s take a look at the numerals!

BEFORE:
Prospect 1000 x Conversion 25% = 250 buyer x 2 transaction x transaction average Rp. 20.000 = Total Revenue Rp. 10.000.000 x 25% Profit Margin = Profit Rp. 2.500.000.

Using above techniques, then we succeed in increasing just 10% for every point of the Business Chasis. Let’s take a look at the result afterwards.

AFTER:
Prospect 1100 x Conversion 27,5% = 302 buyer x 2,2 Transaction x transaction average Rp. 22.000 = Total Revenue Rp. 14.616.800 x 27,5% Profit Margin = Profit Rp. 4.019.620.

You see, just increasing 10% from each point of Business Chasis above succeed in increasing profit Rp. 1.519.620 or 61%!

I’ve proved it!!

December 2005
Source: Roni Yuzirman, Manetvision (Indonesia),
Edit & translated by: Febby Rudiana