Real Stories, Real Results
At EngageCo, we don’t just believe in profit by design—we’ve seen it work time and time again. This week, we’re pulling back the curtain on a real-life success story of one business owner who turned things around with small, strategic shifts. Along the way, we’ll share practical insights you can use in your own business.
If you’ve ever felt overwhelmed by day-to-day operations, unsure of where to start, or stuck chasing small wins, this story is for you.
Client Spotlight
From Chaos to Clarity: Meet Sarah, a Family Business Owner
Sarah owned a small family-run retail store generating $750,000 annually, but her profits barely broke even. Between rising costs, outdated systems, and inventory piling up, she felt like she was running harder but getting nowhere.
When she partnered with EngageCo, we discovered three key areas where she could immediately reclaim her profits:
Supplier Negotiations: We helped Sarah renegotiate her supplier contracts, reducing costs by 12%—saving $22,000 annually.
Streamlining Inventory: With EngageCo’s guidance, Sarah implemented a Just-In-Time (JIT) inventory system, cutting storage expenses by 30%.
Pricing Strategy: Sarah introduced a small 5% price increase on her best-selling products. Not only did her profits rise by $25,000, but her loyal customers didn’t blink at the change.
The result? Sarah’s profit margin increased by 25% in less than a year. And for the first time in years, she was able to step back from the day-to-day grind and focus on growing her business instead of just running it.
Quick Tip: The 1% Rule
Did you know that increasing your prices by just 1% could lead to an average profit boost of 11%? That’s right—no major overhauls or dramatic price hikes, just a tiny adjustment that customers likely won’t even notice.
Try this today: Identify one high-performing product or service where you could nudge prices up slightly. Track the results, and you’ll be amazed at how quickly small changes add up.
Why Cutting Costs Alone Won’t Save You
Here’s where most business owners go wrong: they think slashing costs is the only way to boost profits. But there’s a limit to what you can cut. Once you’ve streamlined expenses, the real growth comes from smart pricing strategies and adding value for your customers.
For example, instead of focusing on offering the lowest price, Sarah leaned into the unique value her store provided: curated, high-quality products customers couldn’t find anywhere else. By emphasizing quality and convenience over price, she was able to increase prices—and profits—while keeping her loyal customers happy.
The takeaway? You don’t win by being the cheapest. You win by being the best at what you do.
Price Hikes Build Loyalty
You might think raising prices will scare off your customers, but studies show the opposite can be true. When you raise your prices strategically, customers perceive your business as offering higher value.
A survey by Deloitte found that 45% of consumers associate higher prices with better quality—and are willing to pay more when they feel they’re getting premium service or products.
Here’s the kicker: the key isn’t the price hike—it’s the story behind it. If you communicate why you’re raising prices (e.g., improving quality, sourcing locally, or innovating), your customers will not only understand but feel more connected to your brand.
So, here’s a bold idea: When you raise prices, share the “why” with your customers. It could turn a perceived negative into a loyalty-building moment.
Statistics That Matter
Businesses that raise prices by just 1% can see an average profit increase of 11%, according to Harvard Business Review.
34% of customers are willing to pay more for businesses that provide exceptional service or unique offerings.
Companies using JIT inventory systems report saving an average of 20% annually on storage and waste.
Sarah’s story proves these stats true. By addressing her operations holistically, she unlocked more profit than she thought possible.
Profit is not something to add at the end—it’s something to plan for in the beginning.
Design Your Profit Breakthrough
Feeling inspired? Here’s your next step: identify one area in your business where you can take action today. Whether it’s renegotiating with suppliers, evaluating your pricing, or streamlining inventory, the path to profit starts with one decision.
Engage With Us
We’d love to hear from you! What’s will be your next big win? Hit “Comment” to share your thoughts, and we’ll respond with a quick tip tailored to your situation.
Stay tuned for next week’s email where we’ll dive into why mindset is crucial to designing profits and overcoming common limiting beliefs (e.g., “I can’t charge more; my customers won’t pay it”).