How to Increase the Prices of Your Products and Services
Hey. It’s Mike here again from M Business & Marketing Solutions!
How are y’all?
Today, we’re going to talk about — the ways to increase the price of your products and services.
You might say…
“What are you talking about?
“Can I really increase the price of my products and services?”
“What if my customers strip me. They’ll beat me if I increase my prices.”
That may be the point, but this is a really, really good way to get more income without getting another business or more customers. In order for you to do that, you can start by adding value to your products and services more than what you have. This is for people who have an ongoing customer. If you’re a painter or a trader in some way, you got to start thinking about a system where you can earn more continuously.
What can you give your customers so they keep coming back and let you earn more?
I’m asking you to increase the value of your products and services. Listen, this is important. As you don’t want to be too cheap but you also don’t want too expensive. Even if you’re a trader or a painter, increasing your price and showing more value on your products and services, is essential. Today, let us emphasize the value of what you offer. Value is not just based on the pricing. It is based on what your customer thinks.
Understanding the term “Concession”
Let me share with you the term that we use in negotiation. It’s the word “concession.”
What is it? It is something that you can trade that will not cost you very much, but a big thing for the clients. For example, when I used to do a door-to-door selling of water purifiers — what I found was, people were constantly asking for a discount. They wanted me to give my products at a lesser price from its original offer. They wanted a 20% off.
“If you take off 20%, I’ll buy it today.” – Do they’ll say. Then I’ll be like, “I can’t do that“.
So I thought, “What about if I found a way to add a little bit more value, to some of my products and services that I could possibly throw in for free, but had the same value worth to them than discounting the 20%?“
What I did was, I took a polypropylene bottle in the fridge that was retailing at $20 to $30. Thinking how much the discount would be when I only got that polypropylene for $4. I was making 26 more dollars per unit than what I had before. Simple right?
So in a concession, you’ll want to your put up your products at a reasonably higher price. Make sure its a reasonable price. Like for an instance, you might want to add value because on some type of sealant or something that you actually put in place — that isn’t going to cost you much, but will be a big deal for the customer.
Think about that! That’s how you can add more value to your products without spending too much money then you can earn more. That’s how you can earn more money for a little investment on your part – the unobvious way – without your customers noticing it.
For instance, you might be with a business where you have regular customers. How are you going to put it up? Well, you can tell them –
“From this moment forward, we are undergoing special circumstances. Because of X, Y, Z and of what’s been going on in the industry, we’ve had to put together some quality assurance for our customers’ benefits. That is why we’re adding this content to this product.“
It’s pretty much that, or you can say,
“Look, from now on, I’m going from “X” price to this “X” price.“
Just make sure that you are ready for your regular client’s questions. Be ready with a reasonable answer. Remember the added value or the change in the ingredients of your product as for their sake.
These might be adding small things but it’s a sure win to make a big difference to your customer and to your earnings as well. Do your research and make it happen.
Think carefully before laying out your additionals. Again, we have a facebook group named Business Growth Tools. Join us for more information on how you can earn with your products and services.