Why should you read this post? …because

Today’s ONE-WORD tip is an oldie but a goodie.

I want to share one of the most powerful trigger words you can put in your website, your emails, your sales letters or even in general conversation with anyone your are trying to persuade.

This one word triggers something in our reptile brain.

It can be used in almost any situation.

To prove it…I wanna share a quick test.

I want you to spot which word I am talking about from this short story….

[Last October, I went on a family holiday to Lanzarote.

Family holidays are great when you get there…but the red eye departure times, the 7 bags of luggage, the waiting, the queueing, the buses, the taxis, the checking in, the fighting over tablets, the “Daddy I have to go to the toilet AGAIN”, the dirty looks from the passenger sitting on the aisle seat, the Ryanair rock hard seats, those bloody overhead compartments when you have put your bag 5 rows back from your seat then wait till everyone gets off first before you can retrieve it…nuff to make you go cracked!

Who lands at the destination relaxed and calm…like the families in the brochure?

Not us anyway…

Nevertheless, arrive we did and boy was I ready for a dip in the pool and a cold one.

The queue at the hotel reception was 4 deep with only one working receptionist. Just another tiny agitation.

Finally we get to the front.

“Sorry there’s a problem” says the receptionist.

I feel blood starting to simmer.

“Your room is not available we would like to transfer you to a different hotel just temporarily…just for one night – because there’s some flooding in the bathroom and we need to fix the problem.”

Can we not be moved to another room? Even upgraded!!!

“Unfortunately we cannot do that because the hotel is fully booked”

But because of your inconvenience… we will upgrade your package to full board for the duration of your holiday.

Rage slowly gives way to acceptance of the circumstances and we taxi off to our new hotel.

Sure, every hotel floods once in a while. Can’t be helped]

Well did you spot the most important word used by the receptionist…unbeknownst to her I might add?

Alright I’ll explain.

Or rather I will let the master of influence himself (Robert Caldini) explain backed up by some research from a Harvard psychologist.

“A well-known principle of human behavior says that when we ask someone to do us a favor we will be more successful if we provide a reason.

“Harvard social psychologist Ellen Langer demonstrated this unsurprising fact by asking a small favor of people waiting in line to use a library copying machine. ‘Excuse me, I have five pages. May I use the Xerox machine because I’m in a rush?” The effectiveness of this request-plus-reason was nearly total: 94 percent of those asked let her skip ahead of them in line. Compare this success rate to the results when she made the request only (without giving a ‘reason why’): ‘Excuse me, I have five pages. May I use the Xerox machine?’

“Under those circumstances, only 60 percent of those asked complied. At first glance, it appears that the crucial difference between the two requests was the additional information provided by the words, ‘because I’m in a rush.’

“But a third type of request tried by Langer showed that this was not the case. It seems that it was not the whole series of words, but the first one, ‘because,’ that made the difference. Instead of including a real reason for compliance, Langer’s third type of request used the word ‘because’ and then, adding nothing new, merely restated the obvious: ‘Excuse me, I have five pages. May I use the Xerox machine because I have to make some copies?’
“The result was that once again nearly all—93 percent—agreed, even though no real reason, no new information, was added to justify their compliance.

Mental isn’t it.

The power of that one word “BECAUSE”.

So next time you write an email, or do a sales call or edit your website, fill it with “becauses”

Why? …because that’s why!

It’s proven to generate a desired response or action.

Frame your reasons with “becauses” and they immediately sound more persuasive.

Over and out!

Gareth

P.S. Each month I allocate personal time to provide subscribers with a F.ree 30 Minute Consultation during which all my knowledge and experience of web design and digital marketing is focused on your business. You get to walk away with actionable steps which you can put to use immediately for some quick easy wins. To book a slot go to this page!

How to charge more without losing customers!

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…

What’s easier?

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 guidancego here to book your free 30 Minute Consultation today!

Over and out,

Gareth

Pricing – Why it matters more than sales…

Pricing…Why it matters more than sales!

Time 07:14 AM

Monday, 25th January 2016

Location: Office Desk

Back in the day, I trained as an accountant.

Yes the boring dull as dishwater profession.

Since qualifying I haven’t practiced, though some of the things I learnt have came in handy ever since.

One of those is understanding margins and pricing, which I wanna speak about in this blog post. Heavy topic for a Monday…but it will be an eye opener for sure!

First though, a straight forward question.

Would you rather increase sales or prices?

Most business owners I meet inadvertently respond with SALES.

Most are scared to touch prices. Afraid of scaring off precious customers.

I get it.

Yet, hopefully today I can show you how pricing and in particular raising your prices

will have a much greater impact than just focusing purely on where your sales is at.

First though we need to discuss markups and margins.

What would you consider a healthy markup on a product/service?

(ie how much would you add onto the cost of your product or service to get your selling price)

Obviously, it depends highly on the business…

But a typical markup in your average independent retailer or wholesaler would be 100%. Meaning if you could buy some widget at €50, you would expect to sell it at €100.

Sounds like a healthy place to start right.

But let’s look at it from a margin point of view.

A 100% markup converts into a 50% margin.

Take our example prices…€50 as a percentage of €100 is 50%. Not rocket science.

But as most of you know…the taxman needs his slice which for arguments sake and easy math is 20%.

That leaves you with a net margin of 30%…to cover your general overhead, cost of fulfilling the sale and profit.

Now back to our pricing.

Look, everyone wants a deal. It’s part of the laws of trade. It’s so ingrained that for many of us, throwing out a little discount is a given.

Price comes to €102.50. Ah sure you’ll do it for the hundred.

Of course you do. No big deal right.

But here’s the real impact of shaving that 2.5% discount off repeatedly.

Do it often enough, and you need to pull in an extra 10% customers just to hold your margin and make the same money.

But look I hear you, it doesn’t happen all the time. So no biggy.

Now let’s imagine, sales are slowing and you decide to run a promotion.

10% off everything during sale time. Just a measly 10%. Bound to get a bump in customers and sales to cover it.

What’s the impact of that?

Well cut your prices by 10%…you need a 50% increase in sales to put the same money in your bank.

50%!!!

Even scarier…

What if your standard margin isn’t 30%? What if it’s just 20%? Meaning you’re buying at 50 and selling at 80.

Then that 10% discount would require you to double the amount of sales to maintain profit levels.

So I hope this little example shows the dangers of discounts.

If you can, avoid them like the plague.

And that’s only one side of the story.

What about the impact of raising your prices?

So instead of selling for €100, could you sell it for €105. Doesn’t seem like an earth shattering amount.

However, raising your price by just 5% means you could afford a 15% drop off in sales before seeing any negative impact on your overall profit.

Put an extra 10% onto your prices and you could afford a 25% reduction in overall sales.

Hopefully your spotting a trend here.

Pricing has a bigger impact on your profits than sales.

Question, can you increase your prices?

The answer always is YES!

You just need to find a way to increase the value of your offer.

And that’s what I’ll talk about in tomorrow’s post.

Over and out,

Gareth

P.S. Each month I allocate personal time to provide subscribers with a F.ree 30 Minute Consultation during which all my knowledge and experience of web design and digital marketing is focused on your business. You get to walk away with actionable steps which you can put to use immediately for some quick easy wins. To book a slot go to this page!

onlineliftoff.com

gareth@onlineliftoff.com

+353 868268081