How to Increase Profitability of Your Small Business With the Earl of Sandwich
So in 1762, there lived the Earl of Sandwich. Now at that time, sandwiches weren’t even a thing. This is the origin story for where and how sandwiches came from. So, the Earl of Sandwich was this really hardcore gambler. He was gambling one day, he got hungry, he calls for his servant and they don’t know what to do. Because he doesn’t want to stop gambling to be able to eat, right? So, they have the roast beef and they don’t know what to do so they kind of take the roast beef and they put a layer of bread on the bottom, the roast beef, and a layer of bread on the top. And that way, he can hold the sandwich in one hand, take a bite and get to keep gambling with the other hand. And since then, the sandwich is ultimately born. To this day, there’s something like 300 million sandwiches that are eaten every single day in North America alone, you really can’t make this stuff up.
So I promise to tell you, how does this tie into finance in any way, shape or form? Well, remember that finance is really the study of how to bring more profit into your business. So you’re always looking at the variables that are driving top line revenue and your cost structure, so all the things that you’re spending money on, so that ultimately you can maximize your profit in the short term and in the long term. And that’s really what what happened with a sandwich. So the cost structure with the sandwich was the roast beef. It was the middle part that was really expensive but by taking a very inexpensive piece of bread which was common, you know commoners had bread all the time as it was not an expensive or rare item. But by taking that inexpensive item and pairing it together with a core product and service, the roast beef, ultimately the volume of sales were able to go up.
So, I think the challenge is really for you to look at your own business and whatever your core services are, you know like whatever your bread and butter product and service is. And your business might be from, you know there’s hundreds of different industries, whatever your business industry happens to be, it’s to actually get a pen and paper and brainstorm for yourself what would be a very inexpensive item that I could pair up with my core product that could either increase the quantity of what I’m selling or potentially increase the perceived value of what it is that I happen to be selling. So, that could be as simple as including an ebook, an information product, a guide or a checklist for whatever industry you happen to be in. Those are type of items that have a very low cost structure associated with. You create it once and it really doesn’t cost you anything more to keep selling it or very, very little to keep selling it. So go grab yourself a pen and a paper and see if you can create the next version of the sandwich and ultimately, hopefully be able to benefit by increased profitability in your small business!