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Your Pricing Strategy: Charge More Not Less

Three Simple Steps That Can Double
Your Sales and Triple Your Profits

Your prosperity begins with your pricing strategy.”

https://jubileemediagroup.com/your-pricing-strategy/

Do you ever think about just how many ways there are to increase your revenue?

A hundred ways? Two hundred ways? A thousand ways?

How could a person ever know where to start?

Well, here’s the first good news you’re going to discover today – there are ONLY THREE ways to increase revenues in ANY business.

  1. Get new customers/clients/patients.
  2. Get your customers/clients/patients to buy more stuff (and increase the size of the transactions.)
  3. Get your customers/clients/patients to buy more often.

There are lots of things you could do to increase your business, and you can do all of them over time.

But right now we’re going to show you how you can tweak these THREE areas in your business where you can make a few tweaks that will increase your bottom line profit to the point where your bookkeeper will think you must have started laundering money for a drug cartel.

Price Strategy Number 1

Get new customers/clients/patients.

This is what almost all businesses focus on.

And this is what ALL advertising agencies want to SELL YOU on.

(Because their only product is ad space, and delivering on Number 2 or Number 3 is very difficult – if you don’t know how.)

However, getting new customers is the MOST EXPENSIVE and challenging of these three things.

Yes, getting new customers is sexy and sounds like the answer to all of your challenges, I understand that, I used to think that too…

But I have learned that the PROFIT and the VALUE of a business is in how well you do Number 2 and Number 3.

Maximizing your PROFIT is the most important thing you can do in your business.

More profit will enable you to grow your business even bigger and faster, hire more and better employees, upgrade your business, and give you the funds to attract more new customers, and everything else you want to do.

NOTE: We recommend that you focus on your existing customers/clients/patients by taking action on Number 2 and Number 3 before you invest in getting new customers for TWO reasons:

  1. It doesn’t cost you anything.
  2. It will make the new customers you acquire even more valuable to you.

Price Strategy Number 2.

Get your customers/clients/patients to spend more on each transaction.

There are TWO parts to getting your customers/clients/patients to spend more each time they visit you:

Part One is offering add-on items and/or product (or service) upgrades to your customers/clients/patients when they’re placing their order or checking out.

“Would you like fries with that?”

Those six simple words are worth SIX BILLION DOLLARS per year to McDonalds..

Part Two is raising your prices.

(I know this may sound scary at first thought, but please at least hear me out on the this extremely important advice.)

You can never win a price war with a bigger and better financed competitor, so why try?

Let’s talk about Part One first (Add-On Items and Product Upgrades), I know you’re going to want to add this profit-booster to your wealth-building repertoire bag of tricks.

Add-On Items

Your “value ladder” moves your customer along your path of additional product/service sales.

This is worth repeating: “Would you like fries with that?”

Those six simple words are worth SIX BILLION DOLLARS per year to McDonalds.

What if you ask this question to YOUR customers/clients/patients?

Do you think you could add immediate dollars to your bottom line? Without a doubt.

Without raising your prices or advertising to find new customers/clients/patients.

(You’re leaving a LOT of money on the table if you’re not utilizing this simple technique.)

The cost of making the sale for the second or third related product or service is negligible compared to the cost of making the first sale, this really increasing your profit per transaction.

“Would you like fries with that?”

Make it easy for your customers to add a related product or service to their purchase at checkout or before.

Every business has something they can upsell to their customer:

Fast Food – “Would you like fries with that?” “Would you like to super-size that drink/fries/whatever?” “How about a milkshake or ice cream cone with that?”

Upscale Restaurant – Cocktails, appetizers, wine before meal. Desserts, coffee, cocktails after meal.

Car Dealers – Those guys are already experts at this!

Automotive Care – Check air filters, fluids, tires, belts, etc…

Lawn Maintenance – “Would you like us to weed your flower beds – apply weed and feed – apply ant control – whatever… today?”

Dentist – “Would you like a teeth-whitening treatment today?”

Chiropractor – “Would you like a massage today?” Vitamins or nutritional supplements – exercise gadgets – books – whatever…

You get the idea…

Always go for the add-on sale.

Once your customer/client/patient has said yes to the main purchase, it is a LOT easier to get them to say yes to a second or third.

Bundles can increase your transaction size (think McDonalds Happy Meals or Value Meals).

Your Pricing Strategy

Another smart strategy to do more business with each customer is to diversify your products and services.

Say for example you have a carpet cleaning business.

After you’ve done a great job of cleaning your client’s carpets, you could follow up with your client newsletter or a sales letter offering a fancy vacuum cleaner or air purifier.

Product or Service Upgrades

Your “ascension plan” is a pre-determined path your clients move along from level to level of increasingly valuable products or services.

You should try to have THREE different grades of product or levels of service – like Good – Better – Best or Small – Medium – Large or Bronze Package – Silver Package – Gold Package at THREE levels of price.

Most of your customers will very often buy the middle price point, IF they’re given the opportunity to.

Part Two: Raising Your Prices

“Only 5% of the business owners in any population prosper while 95% either struggle or fail.
The number one cause of a business’s slide from success to failure to going out of business over time is the erosion of PROFIT MARGIN because of a FAILED PRICE STRATEGY – NOT new competition or any other reason offered as an excuse.”

5% of the market are just looking for the lowest price. That’s only a small percentage of the population that’s price-sensitive…

Most people just want their car fixed (or whatever you’re selling) and they want it done right.

80% of the market will just pay the price you say and don’t care.

So why not work with the 80% that doesn’t care about the price, rather than worrying about the 5% – let them go to your competitors and drive them crazy, because that group is the biggest complainers.

Trying to please the lowest-price customer is just a race to the bottom and one that will bankrupt you to win.

Charge more, not less.

NOTE: We NEVER advocate discounting your prices as a strategy. It is better to RAISE your price than to lower it.

(Even if you win a price war today, you’ll lose it tomorrow.)

You can never win a price war with a bigger and better financed competitor, so why try?

If you’re going to give something up, don’t let it be your profit. Let it be the segment of your market that makes it’s buying decisions based on lowest price.

“If someone complains about the cost, you know that person is not a good customer.’

In just about every industry, there is a segment of the market that does NOT choose based on lowest price – in fact, a LOT of people will NOT buy the lowest priced product (they think it is inferior!)

So just charge a higher price, don’t hide the fact, maybe even brag about it. Just make yours a better perceived value.

Don’t justify the price, but the value.

How Can You Break the Price-Product Link?

Disconnect price comparisons your mind and the minds of your customers.

Forget comparing your price to your competitor’s price; compare your prices to the time, service, location, guarantee, quality, status, peace of mind, and other hassles of NOT buying and using your product or service.

Do you want to know you’re getting the best, the freshest, the latest, the whatever?

Do you want to we value your time know your time won’t be wasted?

Do you want the easiest and most convenient?

Do you want the peace of mind knowing that we’re on YOUR side, standing behind our product or service?

Do you want to support your local friends and neighbors and local economy?

You get the idea…

Price Strategy Number 3.

Get your customers/clients/patients to buy more often.

The highest return on investment you’ll get in your business is to keep your customers and clients buying from you over and over again.

Your customers are your most valuable asset. You need to stay in touch with them.

(And if you decide to sell your business, your database of customers can be the most valuable part of your business.)

It’s imperative that you collect their contact information and create a Follow-Up System to periodically contact them, so they don’t forget about you.

A monthly newsletter will work wonders for your repeat business.

A membership program is one of the best growth drivers for your business.

When you turn your customers into members, you can maintain the relationship for life.

A continuity program creates recurring income that can cover your overhead.

Think auto-ship subscriptions like Book of the Month Club.

The most important thing you can do for your business is to get your customers to know you, like you, and trust you.

When your customers/clients/patients know you, like you, and trust you, price shopping isn’t a factor.

Your Pricing Strategy Booklet
Your Pricing Strategy Booklet

If you’d like a hard copy of our Pricking Strategy Booklet, please call, email, or post a comment below and we’ll mail you one at no charge.

Mike Stokes
Jubilee Media Group
Baton Rouge, Louisiana
(225) 239-5357

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