I think we all shared a level of outrage at the Wall Street excesses of 2009-2010. And that can make good business leaders tiptoe around strategic objectives like Profit Maximization.

Profit maximization – with integrity – is the fuel for corporate growth strategies and getting the economy back on track, with employment opportunities and a higher standard of living for all. Because when you can comfortably fund business growth internally, you’re protected from the types of credit crunch issues we’ve seen in the turbulent economy of the past couple of years.

And healthy profits that have been well-earned, best reflect the value that the company is delivering to its customers, hence its competitive advantage and market leadership position.

Profit Maximization Must Be Based on Integrity

More often than not, I’ve seen profit maximization – with integrity – ignored in strategic marketing plans, and thus done the wrong way by leaders, mid-level managers and on the front lines. Yet when done right, many of the most profitable companies in the world are the ones we look up to. And measuring Revenue is not enough: many companies on the “Top 100 lists” actually have high revenues but lose money… reflecting a lack of value to customers. Too many leaders fall into the trap of focusing on how to increase sales at any cost, even if those sales are not in the best interests of the customer or the company, including:

• price gouging that destroys relationships with trusting customers
• excessive discounting that tries to profit purely from market penetration
• losing essential talent by downsizing employees to cut costs
• cost cutting strategies in business related to travel and training that harm future results

They’re all tactics that can temporarily increase profits, but they have nothing to do with creating the kinds of value for customers that drives sustainable profit maximization with integrity. I’ve seen these questionable revenue management strategies many times as I’ve helped companies get back on track and recover from abusing their customers when they’ve:

• Over-promised and under-delivered
• Taken advantage of a trusting business relationship
• Acted only in the short-term interests of the company and not in the best interests of the customer.

Profit Maximization With Integrity Occurs Naturally When Value Is Created For a Customer

In your “consumer life”, do you have a favorite store, restaurant, or service provider that you always go to, because…
• they almost always have what you want
• they’re helpful if they don’t
• they create a great experience while you’re transacting business
• you know they’ll be there for you if there are any problems?

Are you happy to pay prices above rock-bottom because of the value you get? Do you recommend them to others you know? Do you always go to them first, even though you might get discount coupons from competitors? That same type of value-creation process is what’s needed by businesses who believe in profit maximization with integrity.

5 Straightforward Next Steps to Profit Maximization With Integrity

1. Talk with your customers, not at them, to find out what they truly value – then deliver on that promise.
2. Find out what they love about you and give them more of it.
3. Find out what drives them crazy and fix it for good.
4. Find out what business challenges they’re still wrestling with, and see if you can develop a new product or service, or even tweak something you’re already doing, to provide a better solution.
5. Be a helpful resource and recommend other solutions, even if they’re not your own.

Finding new ways to deliver value to customers and earning superior profits by capturing that value on the bottom line, is a hallmark of some of our greatest corporations, some of whom earn annual profits in excess of $300,000 per employee. How does your industry rate? How do YOU rate?

The first step in achieving profit maximization with integrity is realizing what is possible. If you haven’t yet picked up your copy of the Benchmark Revealed Special Report, which documents 5 years of profitability data across 72 industry categories, get yours now at the link below.

Take a look at how you’re doing compared to your industry… and compared to some of the most profitable companies in the world. Set a new target, and develop a customer-value-based Profit Maximization plan to achieve it with integrity.

About the Author

Leaders, get your FREE Customized Profitability Analysis plus FREE 53 page Benchmarking report shows you how to set and achieve higher profitability targets quickly and easily, at www.profitmaximizationsystem.com
Anne C. Graham is a Profitability and Growth Expert, Fortune 500 Insider, and Author of The Profitability Maximization Breakthrough System™, which shows motivated business leaders exactly how to achieve profit increases of 243% – 415%, safely and sustainably.