Improve Profits With Internet Technology


A pet business can benefit from the use of web technology to improve profits provided that a clear set of business goals are defined.

Below are ideas on how to use technology to improve the profitability of your pet supply or pet service business.

Overview

 

 

Using web technology to improve the profitability of your pet business is not always a simple, straightforward process. A variety of factors influence the impact on your bottom line. These factors include:

 

 

 

- Having specific business goals identified
- The total cost including ongoing maintenance and support
- Being able to estimate and measure the cost reduction or revenue increase
The following sections focus on using a web site to improve the profitability of your pet business.

 

 

Using a Web Site to Improve Profitability
When evaluating options for maximizing the return on investment (ROI) of your website, it is important to understand how the website can be utilized in a complete business environment. The diagram below helps you to visualize this concept. The key point to take away is that a web site can provide services to a wide range of users, not just customers.

Bus_ecosystem_website

Increase Revenues
Below is a list of ways you can potentially generate more revenue for your business through the use of your web site.
 
 

 

Item Impact
   
On-line sales Sell products directly from the website.
Affiliate Income Refer visitors to your site to affiliate partner’s web site and collect a referral fee for each transaction. This technique should be used to “sell” related products or services that your store or site does not provide. An example would be books through Amazon.com
Referral Income Provide information, links and referrals to product and / or service providers that do not sell on-line (versus affiliate income). An example would be groomers, kennels, veterinarians, breeders, etc.
Auctions You can use your website as the basis for hosting a portion of an eBay auction (images). It can also be referenced in any eBay auction you conduct to drive new visitors to your web site.
Advertising / Listing Fees Provide storefront services for key partners and dealers. Promote their products, stores and services on your site and charge advertising or listing fees.
Reduce Expenses
Your website can help you reduce or eliminate the cost of doing business. Below is a list of areas for consideration.
 
 

 

Item Impact
   
Postage Reduce the number of items sent through the mail.
Printing Reduce or eliminate the cost of creating hard copy documents such as catalogs and brochures.
Fax Reduce the number of faxed items.
Telephone Reduce the number of local and long-distance phone calls.
Advertising Reduce the size and frequency of ads placed in newspapers, etc.
Direct Mail Reduce the size, number and frequency of direct mail pieces.
Customer Service Reduce employee time spent servicing customers.
Vendor Service Reduce employee time spent interacting with vendors.
Sales Reduce the cost per transaction of certain types of sales.
Purchasing Reduce the cost of placing orders with suppliers.

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