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!) [digg=http://digg.com/business_finance/How_you_can_raise_your_prices_right_now_promise]

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Need more money? Raise Your Prices… That Simple…

Here’s the deal, big talk out there of recession, banks closing and not willing to lend money and on and on. I have to be honest and tell you I really don’t know the half of it because I’m sticking to my word about not reading the newspaper or watching the news anymore. Yet, I have to admit that I just got back from my spring vacation where I’ll come clean and say that I did glance at a newspaper while waiting in the President’s Club at the airport to see what the news was reporting about our economy. Of course it wasn’t good, and everything was fear and horror, so I quickly put the paper down and went to the Lifestyle section where the news was fluffier and friendlier.

Back to my point, because I did have one! In times like these, with recession looming, the best thing you can do is raise your prices and look into making an upward shift of who your clients are. I just read an article in the New York Times that was all about how entrepreneurs are fearful of raising prices because they’ll lose their clients. It was a well written article but I think the point of it to me was backwards. The real truth of the matter is raising prices is good, and losing customers is also good, it means that the shift you’re making in your business is working. Before you think I’m half crazy, let me explain- If your prices are too low and you’ve made price an issue when attracting customers, guess what- all your customers are going to be price sensitive and probably nickel and dime you to death. The real key for you to realize is you’ve attracted this people somehow to your business. So what you really need to do is change your client model, get rid of those folks and upgrade your clients.

More to my point is when I was on vacation in Las Vegas last week. The biggest and most valued customer in this town is the mass affluent- people who have lots of money and are not price sensitive. These are people who want an experience and want to have fun and are not interested in how much it costs.

We really wanted to see the Grand Canyon, yet after a 5 hour flight, the last thing we wanted to do was jump in a car and drive 4 ½ hours. So we looked at some alternatives. I had heard about helicopter tours of the Grand Canyon but figured it was way out of my league. So I was a price sensitive customer, yet to be honest, I did have the money. I was just reluctant because to me it seemed like too much of an indulgence. We started calling a few places and these folks really know who their audience is. We settled on Sundance Helicopter Tours, which I highly recommend. This was THE most incredible experience I’ve ever had. It wasn’t just the fact that we saw the Grand Canyon from the air and flew over Hoover Dam and downtown Las Vegas. It was the whole encompassing experience of the tour. They come in a stretch limo to pick you up at your hotel and take you to their heliport. All the way from check in to lift off you feel like a very important person. When we got to the Grand Canyon, they serve you a picnic lunch complete with champagne! I took over 200 pictures, (Did I mention photography was much more than a hobby of mine!) and it was an experience that in my mind, I would have paid even more money to take advantage of it. That’s the key- going after a clientèle that values what you do, isn’t a price shopper and you in turn give them a lot more value for their money. (Photo- Harrison, my son in the limo.)

The real diamond in the rough here is when you have the guts to raise your prices, yes, you will lose clients, yet the diamond here is you won’t need as many clients because you’re now charging more money. The other diamond is the clients that stay with you, are mostly likely not price sensitive and are most probably staying because they VALUE you and your product/services. (Photo-Me & Harrison in the helicopter)

So what are you waiting for- raise your prices, make more money and shift your way of thinking today. When you’re in a recession- the best clientèle to have are those people who are affected by a recession last. And those people would be the mass affluent- go get them! [digg=http://digg.com/business_finance/Need_More_Money_Raise_Your_Prices_that_simple]

The amazing Grand Canyon!

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