In today’s 3 Simple Strategies to Boost Your Profits post, I’m going to share how tactically pricing your offers, positioning your offers, and increasing your prices can do wonders for your bottom line. The goal of every business is to attract more customers and make as many sales as possible. Agreed?
Let’s Look at 3 Simple Strategies to Boost Your Profits
1. Pricing Strategies for Profits
When people are shopping and see the difference between your normal price and your sales price, it influences their buying decision. By listing the normal price you’re giving the impression that they’re receiving a fantastic deal at a price that’s a lot less than they’d normally pay.
Therefore, when you place your normal price and your sales prices next to each other you’re highlighting the value they’re getting for their money.
For example, when you’re listing your pricing for a product or service, write is as, “Normally $97 — Only $47 Today!”
It’s a good idea to come up with reasons for each of your discounts. For instance, they could be a holiday special offer, a manager’s top pick, end of year pricing, a clearance sale and so on. In fact, any reason works, and your customers will view them as a genuine deal that they’ll want to take advantage of.
Remember, we all love a bargain. So, make sure you always create the perception of a great offer and a reason for that deal.
2. Position Your Offer to Increase Sales
In a lot of instances, it can be a great idea to offer similar options where the “value buy” seems like an incredible deal.
For example, let’s say that you’re selling an SEO service to help people improve their website rankings. Your main offer could be a done for you package for $967. With this offer you’d spruce up their website and offer some basic consultations as well. Typically, that could seem like a substantial amount of money to some people and this price could make them reluctant to buy.
However, you could offer three options:
Basic Package:
At $867 it only includes a report where you diagnose the issues but don’t fix them.
Most Popular Package:
At $967 it includes analysing and fixing all the issues in addition to three free 1-to-1 consultation calls.
Premium Package:
At $1,967 it includes everything in the most popular package and also unlimited 1-to-1 consultation calls for a month.
Now what this does is make the majority of people think that the middle, “most popular” package is the best deal. As you can see it’s only slightly more than the basic package, but it includes a LOT of extra value. Whereas the “premium” package is more than twice the price but only has some extra consultation calls that most people think they’ll never get around to using.
Very quickly people perceive the $967 option as being cheap and an amazing deal! Therefore, the other options you’re offering aren’t intended to necessarily get sales. They’re simply designed to highlight your main offer and make it stand out more.
So, by directing people to these options and writing clearly Basic Package, Most Popular Package, and Premium Package you can help them differentiate between them and ultimately draw them towards the most popular package. Always make sure you’re transparent. Use bold colours and high quality graphics and images to point them to the best or most popular option. Also, make it seem like it’d be crazy for them not to choose the offer you want them to snap up.
Remember that if you didn’t have your basic package set up they might think the most popular offer is expensive. However, when they see it’s only slightly more than the basic their mindset shifts from ” that’s way too much!” to ” that’s a great deal as it’s only a bit more than the basic package!”
3. Increase Your Prices and Boost Your Profits
Increasing your prices is such a simple way to boost your profits and it’s a strategy that many business owners overlook. As it happens, most people perceive a product or service that has a higher price as being of higher quality. So, this can often motivate them to make a purchase. When you increase your prices you’re earning more per sale, in addition to increasing your profit margin. Moreover, you can take this method a step further and target higher value customers.
For example, if you run a business mentoring company and you presently charge $197 an hour for your time, raise your rates to $997 an hour. With the perceived higher-quality and value in your mentoring, aim to approach businesses who make a substantial amount of money rather than those who perhaps wouldn’t have the extra funds available to invest in your mentoring service.
Therefore, in this scenario one customer could be worth five of your pervious customers. Now, not only have you raised your hourly rate, but you’ve reduced the amount of work you need to do to make the same amount of money. This is a great result!
I hope you found value in my 3 Simple Strategies to Boost Your Profits post. I’d suggest testing these three strategies out to find what works best for you.
To Your Success!
