“I need more leads…”
“I need more sales…”
“I need more traffic…”
Sound familiar? It does to me, because new clients always say this to me before I show them how to increase and multiply the profits fast, with very little work.
In this 3-part series, I’ll show you three, simple steps you can take to get more profit in your business.
There are obviously thousands of ways you can make more profit in your business - depending on your business model, but let’s focus on the ones that don’t require you to…
- Buy more ads
- Create new products
- Charge inflated prices.
We’re going to start with the easiest to implement methods first, then we will cover a more long term approach.
Alright, here we go…
Incremental Increase to Price
Nine times out of ten, the one thing I’ve seen most of my clients fail at is increasing profits due to inadequate pricing.
Now, like I said before, you are not going to super inflate your prices. That’s not fair to your customers and you probably wouldn’t be able to live with yourself.
To put it simple, each year or every six months, you’ll simply increase your prices by a small percentage, then adjust that price to have a more marketable appeal.
Here’s an example.
Nancy sells her video, self-study program for $597.
On average, Nancy makes ten sales of this program per month.
Her initial thought is…
“I need new customers.”
Sure, new customers are great…but it’s much easier to sell to existing customers and it doesn’t take much to increase the price of a low ticket program like Nancy’s
If we simply increase the price of Nancy’s $597 product by 8%, the new price would be $644.76. That’s a $47.76 increase in customer value, for each product sold.
Now, that price point isn’t what we would call “marketable” so let’s adjust it a bit.
Let’s call it $647 or, even, $645.97.
As you can see, this price would look more appealing than the previous increase.
If we go with the $647 price point, Nancy is earning an additional $50 per sale, at 10 customers per month, she just increased her revenue by $6000 per year.
The best part is…
…this is just from one product.
Now, imagine Nancy had 15 products and she did this increase to each one…and she only did it once per year.
Well, I don’t have to tell you how much an 8% increase in revenue per year could do for your business, do I?
Next time, we'll take it a step further to see if we can increase the overall lifetime value by making one additional tweak. Stay tuned.