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5 Thought-provoking Profi t Models

Leslie Lyon February 2013 issue of Skin Inc. magazine

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It’s very difficult to make money—let alone be profitable—when boxed into a no-profit model. If you have a genuine, honest-to-goodness interest in profitability, the following profit models, adapted and interpreted from The Art of Profitability (Business Plus, 2003) by Adrian Slywotsky, will provoke some thought. Identify which ones you use, how they might be improved upon, and which ones might be adapted to better your business.

1. Customer solution profit

Do this before anything else! The customer solution profit model is based on front-end loading your time for long-term pay off. Uncovering your clients’ needs and desires means that your philosophies, products, services and solutions become interwoven into their daily lives. It is at this point that your costs go down and your revenue goes up. Instead of providing small, incremental, unprofitable improvements to the things you already do well, focus on the needs of your clients to create meaningful solutions to their real-life problems.

Assign a question of the day—one question that every team member will ask each client, and implement revolving three-point mini surveys at check out or online—with action-oriented record keeping.

2. Pyramid profit

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