In the Trenches: Looking Beyond the Customer for Revenue

. Posted in small Business questions


In every business, there-s always pressure to increase revenues. Looking at our business, I realized we were in a tough spot in that regard. If we decided to raise rates, we would probably kill demand, but we did need to increase the amount of money that was coming in the door. So we started looking beyond the customer for revenue, and so far, it-s working well in more ways than one.

Up until last week, our service business was bringing in revenue solely from customer-paid fees. After trying a few different price points in the market, we settled on the ones we have today. It seemed to be the right price for customers, but we weren-t able to make enough money to really scale it and be successful on a broader level. Realizing that we wouldn-t be able to raise rates without killing demand, we had to get more creative.

We started looking to our suppliers for revenues, and it-s worked. Instead of solely getting paid by our customers, we-re now getting paid commissions from the other side of the coin. We-re now a travel agency, in effect. The combination of revenues from multiple sources makes the business far more viable. It also allows us to provide better service by being able to book travel directly instead of just directing people to other places to book.

The result is not only better service for our existing customers; it-s also opening up the business to new customers. Small businesses that travel have now started coming to us about handling their travel needs, something that wasn-t really attractive to them before when we couldn-t do the booking ourselves.

So now, we-ve increased our revenue per customer, improved the quality of the product we can offer, and expanded our potential market. None of this would have happened if we hadn-t decided to look beyond the customer for alternate revenue sources.

Brett is the Founder and President of Cranky Concierge air travel assistance. He also writes the consumer air travel blog, The Cranky Flier. View all posts by Brett Snyder This entry was posted in Marketing and tagged customer service, in the trenches, profit, revenue. Bookmark the permalink.
Learning when you are allowed to and how to start a non profit business are critical steps in a busi
Starting a business and need to learn how to start a limited liability corporation? For those who w
Interested in learning how to start a corporation? Let’s start with an overview… A corp
In this article we’ll cover the definition of sole proprietor. There are a multitude of small
What is the definition of a corporation? This article will explain the basics of the corporate entit
Alphalogix has again upgraded their popular Versona Instant Messaging System by adding the capabilit