Put your prices up!
OK – we see all and sundry going on sale. Black Friday, Cyber Monday, Boxing Day Sales, January Sales… It’s never ending.
But I dare you to be different. The majority of people don’t just buy on price. They don’t.
If you want to see an increase in profits – Put your prices up! No… really.
I speak at conferences all over the UK and internationally, and increasing sales and profits is a common denominator.
I spoke for a client, at FutureScape 2014, the number one landscape industry show in the country in November. I delivered a talk on how to boost your sales and profits which I called – “Champagne results on a beer budget”, I shared low cost and no cost ideas with the audience which they could take back to their businesses and implement, now you can too.
One of the tips that I shared on the day was to put your prices up.
I walked the show chatting with exhibitors prior to my talk.
One of the first exhibitors I stopped and chatted with was Ken. He proudly told me about his product, (a specialist wood treatment) and how it was better than any of the other well-known brands sold at retail.
I casually asked, “So, how’s business, Ken”?
“Great” he replied with a big smile.
“Fantastic, then put your prices up.” I said thinking he’d respond negatively to the idea and we’d have a debate about market pressures, which would also serve as a warm up for me before taking to the stage.
“We increased our prices a few months ago, by almost 25%”.
“Wow, well done and what happened to sales”? I asked.
“Sales are up over 200%”… he said with an even bigger grin.
If your products or services are really somewhere between good and great – people will pay the right price for them. Have faith.
There’s always going to be someone offering something similar at a lower price – but not your products – not your service or your expertise.
There’s always someone that will offer a cut-price deal, but will they end up with a happy customer? Will you lose a few customers when you put prices up? Possibly.
But guess what?
They’ll be the pain in the backside ones you don’t want to deal with any way. The troublesome ones that take up too much of your time. The ones that quibble over every thing and probably pay late too.
Charge what you’re worth
I was in Sydney, Australia last year in the Central Business District, amidst the hectic shopping scene – Buskers merrily plied their trade.
There were some stand out musicians. One in particular grabbed my attention.
Yet even the best were busking for change. Quite a few had CD’s for sale too. All at $10 a time.
I listened to this one guy for ages, he was brilliant.
When he finished his set I went over and thanked him. I also made a polite suggestion…
“You’re worth it,” I said, and I meant it.
He laughed at first, then said – “but look – it’s what all the other guys are charging, $10 a CD.”
He was comparing himself to “similar” musicians; it was what he believed to be his market pressure.
“But they’re not playing your guitar, they don’t play like you – they’re not you – charge what you’re worth”. “OK, what have I got to lose”?
He scribbled a fresh sign – $20 each or 2 for $30…
I went about my shopping – he went back to his guitar and pleasing the crowds.
When I stopped by an hour later – he was one happy busker – He had more than doubled his takings from the previous set.
Are you charging what you’re worth?
I guarantee most of you could put your prices up! He laughed at first too…