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November 8, 2025 How To

A three-step playbook to make your business more profitable

By Dan Reed, guest columnist

No matter your industry or business size, there are only three ways to increase profit in a business. You can raise prices, sell more, or spend less. 

Dan Reed of SCORE
File photo / Tim Greenway
Dan Reed of SCORE

Everything else — including marketing campaigns, customer loyalty programs and product upgrades — all fall into one of those categories. Let’s look at what you can work on today to boost profitability.

Sell more 

Selling more is the most obvious path to higher profits, but it doesn’t always require big investments or risky expansion like a new location or product line. Sometimes it’s as easy as ensuring your existing customers know everything you do. Here are some options for selling more. 

Reach new markets: Look for new ways to get in front of potential customers. Explore different marketing channels, test new online ad platforms or refine your social media strategy. Sometimes a small change, like adjusting your message or packaging to reach a different audience, can open new doors.. 

Upsell existing customers: It’s often easier to sell to the people who already know and trust you. Can you introduce a premium version of your product, offer add-ons or provide an extended service plan for an additional fee? Maybe it looks like adding on a product or service from another small business that perfectly matches yours for an upcharge. Small upgrades can increase average transaction size and strengthen loyalty at the same time.

Bundle products or services: Pair complementary offerings together to increase overall sales. Bundling your existing products adds convenience and value for customers while raising your revenue per transaction. Who doesn’t like getting a deal when ordering two?

Raise prices or charge more 

Raising prices doesn’t mean losing customers. In many cases, it might be seen as common sense as inflation or tariffs cause price increases across the board. The big thing is aligning what you charge with the value you deliver.

The key is perceived value. People are willing to pay more when they understand what makes your product or service better or different. Look for ways to communicate that value more clearly. Can you emphasize quality, speed, local expertise, or personalized service?

This can also be emphasized when discussing your input costs. If you demand a high-quality input for your business, your customers get a higher quality output, and most understand this trade-off when it comes to price increases. 

You can also add low-cost “extras” that make your offer stand out, like a free consultation or free samples. 

Spend less

Profitability isn’t just about earning more, it’s also about keeping more of what you earn. Reducing costs can have the same impact on your bottom line as increasing sales — as long as it doesn’t impact the quality of your work. 

Negotiate better deals: Review your supplier relationships and see if there’s room to save. Long-term or bulk contracts may qualify you for discounts, and vendors often appreciate open, honest discussions about pricing. This is especially important to keep top-of-mind as prices swing with tariff changes, as It could make more sense to find a different supplier who might not have those impacts. 

Evaluate your marketing return on investment: Not every campaign delivers results, and not every platform makes sense for every business. Review your spending to make sure your dollars are going toward efforts that actually drive revenue. Eliminate or scale back what isn’t working and double down on what is.

Find cost-effective alternatives: Audit your regular expenses, from software subscriptions to utilities, and see if more affordable or efficient options exist. If you don’t need a subscription for something, consider cancelling or finding a single-time purchase that will work for your business.  Small savings, applied consistently, can add up over time.

Paths to profitability 

No matter what stage your business is in, these three levers — raise prices, sell more, or spend less — remain constant.

You don’t have to overhaul everything at once. Start with one small step in each category, measure the results and keep building.

Improving profitability is about focus and discipline, not complexity. By managing both revenue and expenses, you’ll position your business for a stronger, more sustainable future.

About the author

Dan Reed, a Mainebiz 40 Under 40 honoree in 2024, is the marketing and program manager for SCORE Maine and can be reached at  dan.reed@scorevolunteer.org. He is the founder and president of Dan Reed Marketing in Bath. 

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