How you can raise prices- right now- promise…
I know what you might be thinking- “how could I possibly raise prices right now with what’s happening in the economy?” The “sky is falling” down on Wall Street and banks are imploding. In fact my little brother works for Lehman Brothers and still has a job- for now- thank goodness. But the real deal, is you can’t get sucked into the negativity and mind set that all businesses are going to go under. This is actually NOT TRUE. There are many businesses who are making tons of money. The fact is, you just might have to dig a little deeper and change the way you’re marketing or change the way you get new clients.
Let’s get back to the real point at hand- raising prices. The one main factor why people don’t raise prices- is they think they’ll end up losing clients and just be another statistic. Well here’s the reality- if you’re business is one that’s creating value for your customers and clients, and if you’re focused on the market that’s affected least by this tumultuous economy, then you’ll be just fine…
One of the biggest ways you can raise prices is by changing “who” you are selling to. The key again is to go after those least affected by the downturn in the economy AND focus on their passions, not their needs. The market that I’m talking about is the mass affluent. In fact in this months printed newsletter I spent a few minutes talking about the new book I was reading- No B.S. Marketing to the Affluent: The No Holds Barred, Kick Butt, Take No Prisoners Guide to Getting Really Rich by Dan Kennedy. This is a wonderful and inspiring book. There’s tons of great information in here that you can take all the way to the bank. Don’t delay, you need to get your copy now!
Here are 7 smart ways to raise your prices-
1) Charge for things you now give away for free (& others still give away for free)
2) Upsell with your sale- add on more value and bonus and increase your original sale
3) Always give away a premium version of what you’re offering- in fact the best thing is to give people a choice of three- hence Silver, Gold and Platinum memberships are offered more often than not.
4) Bundle products or services together to force a higher transaction sale
5) Upsell after you make the sale
6) Change what you’re selling or the way that you are selling it
7) Use forced continuity- charge monthly fees automatically- for example- online memberships or newsletter
There are many other ways to do this, but these are actually right on the money and are from Dan Kennedy when he spoke at the 2008 Marketing & Money-Making Superconference. If you only do one or maybe even 2 of the things, your could be makingmore money.
I know what you might be saying, “But Shannon, you don’t understand, if I raise my prices that my clients might leave and find it cheaper elsewhere.” Well here’s the deal- that’s fine, in fact, that’s good! Because the reality is you after you raise your prices, you won’t need as many clients ANYWAY! So just stop “yeah butting” me and just do it! I know you’re not charging what you’re worth, that’s really hard, so just don’t think about it anymore- you’re not your client- raise your prices. Ok, I hope you heard me- go forth and reap your rewards. Remember- surround yourself with positive people who are making as much as you, if not more. You will become who you spend the most time with- so beware… (Ok, I don’t think my dog counts though. Yet, if I were more like my dog, that might be a good thing!)
Your BEST blog post yet. Thank you, Shannon. When talk turns to fear about the economy I’m just going to send people here! You are right on.
Thanks Debbie- appreciate your kind words!
I am concerned at how this will read with my clients. Arrogant and greedy during this economic crises, and appearing insensitive. Sometimes decisions are made on principal.I think this is not the best time to raise prices and should wait. What do you think?
Gina, I think your comments are certainly welcome and there are always two sides or even more to every one’s opinion. The premise of my comment is in the world I am in, most of my clients are charging far too little for the incredible value they’re bringing to their clients.
I’m not talking about price gouging and certainly we all have our own businesses to run and need to take heed and do business as we see fit. Some of my clients prefer to raise prices for only new clients coming on board, and keep their current clients at the same rate. The whole point of my article is sometimes we need to step back and reevaluate our businesses and there are other options to create more wealth and be able to succeed in any economy.