This week was busy, busy!
Lots of new client calls, lots of new projects.
On the downside though, my blogging and emailing took a back seat.
You know one of the things that is blatant obvious when doing business online…
The more you email…the more business you get. Period.
Don’t let anyone tell you different.
Slack off and you can tell straight away.
It still remains the best marketing tool in the box. But you have to put it to good use.
I’ll explain more about this another day.
Today’s topic is even more powerful –
How to charge more without losing customers!
In my last post I talked about how pricing is more important to your
bottom line than sales. And the best thing about it is you have full control
of your pricing policy.
To re-jog your memory, just take this simple math…
On a 30% net margin (which is the norm for most businesses), if you can increase prices by just 10%, it’s equivalent to increasing your number of customers by 33.3%.
Put another way – you’d have to find 33% more customers to make the same profit as you would by a 10% price increase.
Now ask yourself…
Increasing prices by 10% or finding a third more customers.
I know which I’d prefer.
Now hopefully with that point put to bed.
How can you charge more without losing customers?
Well that’s easy.
It’s a matter of perceived value.
It your can increase the perceived value of your product or service, you can increase the price.
The trick is increasing the value of your offer without incurring the same increase in costs.
Here’s some suggestions…
– Speed up lead times
– Improve after-sale support
– Improve the quality of materials
– Add more services to your service
– Offer a longer warranty
– Offer money back guarantees
– Make the customer experience better
– Provide training
– Offer installation
– Provide expert advice
– Offer bonuses
– Extend usage periods
Brainstorm ideas for your own business. The list is endless.
The important thing is to be able to justify the price rise and communicate your reasons effectively to the customer. More often than not people are happy to pay extra for the extras!
Remember there’s no point in ever been second cheapest. It’s always better to move your business up the value curve than racing to the bottom.
Don’t think I need to say more.
So today, see what extra value you can inject into your products or services and up your prices!
Before I go…just need to let you know, my February slots have almost gone already.
There’s just 4 SPOTS LEFT!
That means, it could be March before it opens again.
If you’re ready to make dramatic changes to business using the POWER of online marketing and get expert step-by-step guidance…go here to book your free 30 Minute Consultation today!
Over and out,