Raffrey Consulting

Raffrey Consulting Raffrey Consulting helps business owners get a broader perspective on their business using proven to

One of the most valuable assets of any business is a well-developed database. The majority of companies concentrate on g...
16/05/2022

One of the most valuable assets of any business is a well-developed database. The majority of companies concentrate on growing their business by securing new customers, but the reality is that it costs up to ten times more to get new business from new customers than it does to get previous customers to buy from you again.

Establishing new customers means spending time and a significant amount of money finding prospects, educating them about your product and/or service and company, and convincing them that you are the person or business they should buy from. This can be a tiresome and drawn out process with a low success rate

Existing customers and clients already know and trust you, and if they have been looked after in the past, they will happily buy from you again. Most people like dealing with people they trust, who they believe will look after their best interests, and with whom they have developed a good relationship. Therefore, it is imperative that you find out as much as you can about your customers so that you can do this. This is where your database is invaluable.

Your customer database should be used to record all relevant information about your customers and record the sales made and results of all the marketing activities that you do.

Discover more of Raffrey's Insights on Developing Your Database at the link below.

One of the most valuable assets of any business is a well-developed database. The majority of companies concentrate on growing their business by securing new customers, but the reality is that it costs up to ten times more to get new business from new customers than it does to get previous customers...

Have you ever really thought about why people buy your product or service from your business?How would you answer that q...
09/05/2022

Have you ever really thought about why people buy your product or service from your business?

How would you answer that question? Most business owners tell us it is because they give excellent service. The problem is your competitors also provide excellent service.

“We have the lowest prices” is another standard answer. But we all know that no sooner do you lower your prices than your competitors do the same. So you cannot always have the lowest price.
So, if you don’t always have the best price and give as good a service as your competitors, why do people buy from you?

The reason people choose to buy from one supplier over another is not usually because of price alone.

Customers buy because of actual or perceived differences between suppliers. Compare any two businesses. Both have a product or service, perhaps a range of them, a certain quality level and cost, and a specific price.

Ask yourself: Why do I choose to buy from one supplier over another? The answer usually is clear. Better price, better range, better service, better people, better quality. You choose one over another because there is a perceived difference between them, which is why you do business with that supplier. The same situation occurs with your customers. They buy from you based on the differences they perceive between your product or service and your competitor’s product or service. Again, these differences can be in any area: price, service, or delivery.

Discover more of Raffrey's Insights on Developing Your Unique Selling Proposition at the link below.

Have you ever really thought about why people buy your product or service from your business? How would you answer that question? Most business owners tell us it is because they give excellent service. The problem is your competitors also provide excellent service. “We have the lowest prices” is...

If you knew that you could not lose, would you bet on a “sure thing”? If you were sure of the desired outcome, would you...
06/05/2022

If you knew that you could not lose, would you bet on a “sure thing”? If you were sure of the desired outcome, would you take a chance on something new? Of course, you would.
Taking the risk out of a new opportunity always makes the proposition more attractive. This concept has been used with incredible success by some very well-known businesses. It works because the risks associated with the purchase are removed, and you can use it to make more sales and get more business from the customers inquiring about your product or service. You might know this concept better as “a guarantee”.

Risk removal means simply this: in a normal buyer/ seller relationship, the customer usually takes the risk that the product or service works or suits their needs. They must make a purchasing decision (based on a whole range of issues) and, if the product or services does not meet their expectations, they lose out.

Discover more of Raffrey's Insights on Guarantees Removing The Barriers To Sales at the link below.

If you knew that you could not lose, would you bet on a “sure thing”? If you were sure of the desired outcome, would you take a chance on something new? Of course, you would. Taking the risk out of a new opportunity always makes the proposition more attractive. This concept has been used with in...

It is common for business owners, employees, and start to overlook the three critical levels or return elements required...
06/05/2022

It is common for business owners, employees, and start to overlook the three critical levels or return elements required to make a business truly successful. We often commence planning sessions with clients by facilitating the following type of dialogue and openly calculating the level of returns with the staff and employees. This is always undertaken in the presence of the shareholders or owners. It is a very elective method of gaining broad acceptance of the required business returns.

There is often a widespread misconception that the owners are making a fortune and do not worry about the world, while the staff earn just a salary or wage and are expected to care like they own the business. Taking all participants through the three levels of return will add significant impetus and set the scene for any planning day.

Discover more of Raffrey's Insights on Three Levels of Return at the link below.

It is common for business owners, employees, and start to overlook the three critical levels or return elements required to make a business truly successful. We often commence planning sessions with clients by facilitating the following type of dialogue and openly calculating the level of returns wi...

Your business is an investment vehicle. The profit you make at the end of each year is your Return on Equity (ROE) on th...
06/05/2022

Your business is an investment vehicle. The profit you make at the end of each year is your Return on Equity (ROE) on the money you have invested in the business (its value if you sold it).

For example, Wesfarmers, a large Australian business conglomerate and owner of Bunnings, sets a minimum return of 30% ROE for all its businesses. How much ROE did your business generate last year? Could the money be better invested elsewhere? If you increase your profits by $100,000 this year, you have added anywhere between $200,000 and $500,000 to the value of your equity in the business (based on a valuation of 2-5 times EBITDA).

Of course, to access this equity, you’d have to sell your business, but it illustrates the value of becoming more profitable. The main lesson does not to get carried away with your passion for the business. Do not overspend on assets that won’t return better than 30% p.a. in profit to the business. Under-utilised machinery and unnecessary (but fun) expenditure fit in this category. Remember the difference between Harvey Norman and their shabby offices and Coles Myer with top-of-the-range luxurious wood-paneled offices. It doesn’t make much difference to the customers, but it does to the shareholder (you)!

Discover more of Raffrey's Insights on Competing Smartly at the link below.

Being competitive“When you’re green, you grow; when you’re ripe, you rot,” said Ray Kroc, founder of McDonalds. Business is a competitive game, and staying competitive requires continuous improvement. The best way to improve your company is to improve yourself and learn from everyone and any...

t costs up to ten times more to obtain a new customer than having an existing customer buy from you again. Yet thousands...
06/05/2022

t costs up to ten times more to obtain a new customer than having an existing customer buy from you again. Yet thousands of businesses continually invest most of their advertising and marketing dollars to get new customers.

It might be an exciting exercise for you to count the number of customers you have, the average amount they spend with you and the number of times a year they do that. Then, increase the last number by ten or twenty percent, recalculate the balance and see what the numbers on your bottom line now look like. It should be Impressive!

If the impact of a few more sales can be substantial for you, shouldn’t you be doing more to encourage it? The following are ways you might have your customers purchasing from you, not once more, but many times, to experience the increases yourself.

Discover more of Raffrey's Insights on Bringing Back Your Customers More Often at the link below.

It costs up to ten times more to obtain a new customer than having an existing customer buy from you again. Yet thousands of businesses continually invest most of their advertising and marketing dollars to get new customers. It might be an exciting exercise for you to count the number of customers y...

Employing a team member is a significant and expensive ($30,000 or more!) decision. Treat it that way. You would not inv...
06/05/2022

Employing a team member is a significant and expensive ($30,000 or more!) decision. Treat it that way. You would not invest in a piece of equipment or technology worth that amount without a considerable amount of research and comparison, so there is no reason to do otherwise with people.

Take some time to write a very detailed job description.
Clearly define the role and the core activities that you need this person to undertake. Describe in detail the personality traits and the attitude you expect this person to have. Be very clear about the skills you need this person to have and how you will establish that the skills are there. Get your team involved in the process, especially those who will be working with the new person. The job description should have clear critical result areas with measurable outcomes. Develop your selection criteria from this list and write down the three to five must-haves, then the two or three nice to have attributes.

Discover more of Raffrey's Insights on Employing The Best People And Leveraging The Best From Them at the link below.

1. Employing a team member is a significant and expensive ($30,000 or more!) decision. Treat it that way. You would not invest in a piece of equipment or technology worth that amount without a considerable amount of research and comparison, so there is no reason to do otherwise with people. 2. Take....

When you talk about growing a business, the topic of advertising will inevitably come up. Many business owners equate ma...
19/04/2022

When you talk about growing a business, the topic of advertising will inevitably come up. Many business owners equate marketing with advertising, and although there are other ways to market your business, advertising is significant.

There are times for many businesses when advertising is essential. But advertising can be expensive, so make sure you understand the costs involved and the market you will be addressing.
Here is an example. When a new store opened in a new area several years ago, they wanted to get lots of people into their store on the first day to hold a ‘Gala Open Day’. There were demonstrations, tastings, clowns for kids, competitions, and all sorts of exciting things going on. Because no one knew of the business, they had to advertise.

In this case, the most efficient way of letting people know of the new store was through advertising. So a full-page advertisement in the local newspaper was designed and had an appealing headline, heavy use of the word ‘free’, and a competition entry form so that the response could be measured. Letterbox drops in the local area then backed it up, and the two together gave an excellent answer for the business.

They stuck to all the rules and the day was an outstanding success. It is still one of the best days, in terms of sales, that the business has ever had.

But does that mean that every business should advertise like this? Definitely not...

Discover more of Raffrey's Insights on Advertising at the link below

When you talk about growing a business, the topic of advertising will inevitably come up. Many business owners equate marketing with advertising, and although there are other ways to market your business, advertising is significant. There are times for many businesses when advertising is essential.....

Pleased to announce the launch of our updated website.
04/04/2022

Pleased to announce the launch of our updated website.

Raffrey Consulting helps business owners get a broader perspective on their business using proven tools, which usually starts with an initial Business Review Process. We sit down with the business owners, its senior managers and staff, and take them through a structured question and answer process t...

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3/361 Edgecliff Road
Edgecliff, NSW
2027

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