4. PRICING STRATEGY
Would you believe me if I told you that you can INCREASE your prices and STILL MAKE MORE SALES??!!
You can with the 4th profit formula component… getting higher prices for what you sell. We have over 25 strategies and tactics to increase revenue and profits fast and I find the Bundling strategy to suit almost every industry.
Bundling is simply the process of grouping together certain products to create 'packages' which are then sold to clients. When you do this, you completely eliminate the biggest complaint small business owners have these days… competing on price.
Bundling removes price from the equation by creating an “apples to oranges” comparison. You have to remember that customers today shop value… NOT PRICE! Unfortunately, small businesses are LOUSY at conveying their “value proposition”… so therefore, price becomes the only value proposition left to consumers.
The buyer decides if the price you charge is acceptable by determining the benefits they'll receive. Follow this to the letter and you can quickly and easily dominate your market.
In fact, you'll not only dominate, but you can charge double what your competition charges and still be viewed as the best deal around.
That's because prospects don't buy based on price. They buy based on value. The more value you add, the more you can charge and the more the prospect perceives they're getting the best deal. The key is to implement a series of proven and tested value-add strategies that position your product or service as offering the best deal… despite the fact that you charge double or triple what your competition charges.
Bundling can easily increase any businesses revenue by 25% to 40%. If we conservatively say that you could easily expect to see a minor 10% revenue increase in your first year of using this strategy - so what does that translate based on your current annual revenue?
In a recent case study, I found a small property developer £260,000 in additional annual revenue by implementing a bundling strategy… and that grows year after year. £260,000 in additional annual revenue increases the valuation of that business somewhere in the range of £780,000 - £1,040,000.
Are you missing hidden profit in your business?
If you get very conservatively 10% increases in each of the five areas over a year, what would your profit figure look like?
And what if the increases are 20% or probably 50%?
The only thing standing in your way now is getting all of this implemented in a timely and efficient manner.