You did it! You started your own juicing business and have been able to survive most of the challenges of opening a business. You created recipes, navigated the health department, and got enough money together to make your dream a reality. But now there’s a new challenge – how do you actually make your business profitable?
Here are what I consider the four easiest ways to increase your bottom line:
- Add the add-ons
If someone comes in for a juice or smoothie, are you also offering them add-ons like wellness shots, raw snacks, specialty food items, and other products? Offering add-ons can be an easy way to increase the average ticket of a customer, and also increase profitability.
One company that does an amazing job of expanding beyond juice is Moon Juice. Their line of specialty food products, which they call their “Pantry” line, includes plant based powders like cacao, bee pollen, and more. You can also check out their line of “Dusts” including their famous Beauty Dust. I don’t know their numbers, but I would be willing to bet that introducing their specialty food items has increased their overall profitability by at least 10% – 20% compared to just selling juice.
2. Watch your margins
You have many products on your menu, but do you know which ones are the most profitable? If the answer is no, then you need to spend some time and sit down with a spreadsheet and figure it out. Figure out which of your juices and other products are highly profitable, and which ones are not. If you have some recipes that aren’t making money, try raising the price. Either people will continue to buy it and you will now be profitable, or they will stop buying it and you can drop it from your menu.
3. Offer product bundles
Product bundling is great marketing strategy that increases your top line revenue as well as your bottom line profitability. The idea here is that you bundle products together into a package which delivers value to the customer, and makes it easy for them to purchase more products. Some examples of product bundles you can offer:
- Juice cleanse – Offer 6 juices per day as a cleanse package in an easy to purchase package. This one is a no-brainer! If this isn’t on your menu yet it should be.
- A smoothie and a salad – a healthy value meal.
- A juice, a wellness shot, and a snack – customer will be more likely to buy all 3 if you offer them as a bundle.
4. Look for labor inefficiencies
You may just accept the fact that each product takes X amount of labor to make it. But does it? Can you find a more efficient way to make a product? An example of this: A client I was working with only offered made-to-order juice using a centrifugal juicer. When she got a cold-press and started offering bottled juice, many clients would choose the grab-and-go juice instead of the made-to-order juice. The labor cost on a bottle of juice when making them 20 at a time in a commercial cold press is FAR lower than making one glass at a time on a centrifugal juicer, increasing profitability. In addition to customers choosing the higher margin product, they were also buying extra bottles to take home with them. So simply upgrading to cold-pressed juice from centrifugal not only increased quality of the juice, but also greatly increased profitability.