Raise your prices, increase your profits

Hi!

Last week, I hit y’all up with 7 pricing basics that folks miss out on all the time.

This week, I’m going to offer you up some ideas on how you can raise your prices, keep your prices at the right price, or fight the need to discount.

Let me know what you think about the pricing series by sending me a note.

BTW, I’m in London for the next few days…so if you are around and want to grab a coffee or a pint, let me know.

Focus on the impact of your product or service: Last week, I talked about value based pricing and the impact you have on your clients.

The first and most important way that you can raise your prices or keep them high is by focusing on the impact of your product or service.

Don’t fall into the commodity trap.

Are you a recognized leader in your field? That’s worth more.

Do you do things faster than the competition? That’s value.

Do you have unique techniques? That’s also value.

The key thing is focusing on your value and your impact so you can differentiate yourself. Don’t get into a commodity pricing pissing match with a lesser competitor.

Bundle in something that has a high perceived value: You might add in a weekly check-in as a form of “value” or you might add a special report that is valuable.

You can define “value” and bundle any way you like, but you want to increase the perception of value for your market.

For my clients, often it is direct access to me in some way or form that they wouldn’t normally get.

Like the drinks I’ve hosted in cities like Melbourne, New York, or Miami. Or, private dinners that I’ve held in certain places.

These are all extra values and they maintain the perception of value.

Reframe the price: This is more of a sales technique…or, where I learned the idea originally.

It goes something like break the pricing up in a way that feels digestible.

A lot of the examples will show monthly payments and such.

You can do the same thing even if you use value based billing by highlighting the cost in terms of the ROI, the average costs, or how quickly folks will recoup their costs.

Change the terms of your billing: You might still get the same price for your goods and services, but can you get better payment terms?

Cash in hand is better than cash in 30 days, right?

Break your service apart: The opposite of the bundle is when you break things up into their individual parts.

You might make each individual cost a line item and use that as a tool to maximize your pricing power.

Instead of a bundle with research, planning, goal setting, and tactics, you might break each of these into their own individual parts, charging for each one.

These are only 5 ways to increase your prices or maintain price integrity, but if you remember last week’s email…you know for every 1% you improve your price, you gain about 10% in profit.

So keep your prices where they need to be so you can keep your profits where they need to be.

Dave