Larry Potter
Expert
- 27
A Profit Center is defined as, “The branch or division of a company that creates profits individually and separately from the main organization.”
2 methods of creating a profit center for your organization:
1. You can offer a new service that creates a profitable revenue stream.
2. A cost center can turn into a profit center by selling those administrative “cost of doing business” services to other firms.
Now, how do I create a new service offering and market it to my existing client base? The easiest way to accomplish this is to partner with an organization that already has a profitable service on the market that would be a benefit to your clients. Once a partnership is established, the next step is to effectively spread the word to your existing client base. Communicate how your new opportunities will benefit them and move them through the sales cycle. If you have done it right, your existing clients will thank you for your high level of client service. This truly becomes a “win-win-win” proposition!
2 methods of creating a profit center for your organization:
1. You can offer a new service that creates a profitable revenue stream.
2. A cost center can turn into a profit center by selling those administrative “cost of doing business” services to other firms.
Now, how do I create a new service offering and market it to my existing client base? The easiest way to accomplish this is to partner with an organization that already has a profitable service on the market that would be a benefit to your clients. Once a partnership is established, the next step is to effectively spread the word to your existing client base. Communicate how your new opportunities will benefit them and move them through the sales cycle. If you have done it right, your existing clients will thank you for your high level of client service. This truly becomes a “win-win-win” proposition!