Cash – don’t have enough of it?
Not surprising as this is something business owners struggle with every day.
Raise your prices. Most of us our afraid to increase our prices because we see our competitors dropping their prices to get the sale. That’s because all they know is how to sell on price, not on value. If you have been listening over the past few months you have learned how to build your value, sell on emotion and consistently wow your customers.
Here is a little known fact that may change your opinion about price increases. If the margin in your business is 25% and you increase your prices by 10%, you can effectively lose 60% of your sales and still bank the same amount. It may be hard to believe, but it’s true.
You can raise your prices, even in this tough economy you can raise your prices if you know how and when.
Be sure to raise your prices in your busiest season as this has several benefits. You are in demand and you will focus your scarce resource of time on better margin opportunities, and you are busy and mentally better prepared to handle the transition.
Three easy steps:
1 – List all your products and services and rank them on the amount sold for the same time last year.
2 – Remove the most price sensitive items.
3 – Raise your prices 10% on all the products and services that are left.
It’s really that simple.
YOUR CHALLENGE: Make sure that you are selling on value and then take a serious look at your prices.