A most unusual profit centre
The most extraordinary profit centres are often hidden away where you would least expect to find them, others are more obvious:
Restaurants make great revenues on drinks, desserts and coffees.
Retailers can make excellent margins on selling product insurance.
Banks used to make a ton selling PPI.
However, take one step back and you’ll notice that the coffees, insurance etc are just a single transactional moment. The decision to buy will often have been made much earlier.
I would never have pudding or dessert if I’ve experienced surly service with my main course.
Without really understanding the benefits of an Extended Warranty (and having the trust that I would be really well looked after should I need to claim) there’s no way I’m going to buy the guarantee at the time of purchase.
I’ve often talked about putting deposits into the emotional bank accounts of customers.
I talk a lot about this in the new edition of my book 5 Star Service.
You aren’t ready to buy it yet. I’ve been on holiday and haven’t sent you an email for a few weeks.
I haven’t shared the benefits of the new book. I haven’t given you enough reasons why – yet.
But I will.