So many Companies underprice their product, service or experience – do you?
Raise Your Prices to Raise Revenue
Raising Prices is the Easiest Way to Make More Money
One of my favorite subjects to talk about is the subject of selling and how to make more money in your business. Successful entrepreneurs know that if you make more sales, you make more money. I also encourage entrepreneurs to “raise your prices”. And sometimes you can employ both strategies simultaneously.
A Real Case Study – In the Beginning
One of my clients is a holistic business coach, he coaches entrepreneurs on everything from soup to nuts. My client coaches entrepreneurs on business strategy, teamwork, accountability, et cetera, et cetera, et cetera. Early on in our engagement his normal billing rate was $4,000 a day. I asked him “why aren’t you charging $10,000 a day”? His reply was somewhat vague. Entrepreneurs have low prices for variety of reasons. Low self/company/product esteem, pricing as an adder from cost of goods, and others. Pricing makes the most sense when you view the price in relation to the value you provide. And to raise your prices is a simple method to add top line revenue.
Costs are Important, ROI is more important
I don’t want to say that cost is not important, because cost is important. But what’s most important is not what something costs, it’s what it delivers. What is important is return on investment. I don’t mind investing $1, if I’m getting $10 back. In fact, I’d like to put a lot of dollars into something where I get $10 back. We live in a world where most investors would be thrilled to get 8, 10 or 12% return on their money. A coach might give you 10 times the return on your money.
Raise Your Prices and Float on a River of Cash
Over a period of time my client did raise his price. He went from $4,000 a day to $5,000 a day. Then to six, seven, eight, and ultimately to the $10,000 per day price. The stair steps took place, because the entrepreneur was uncomfortable taking the big step all at once. It doesn’t really matter if you take one big step or if you take a little steps, just start stepping. If you’re not charging enough for your product, service or experience please adjust your prices…up – you’ll be happy you did.
About Your Host on the Proven Entrepreneur Show
Don Williams is a 35-year Serial Entrepreneur. He consults and coaches 1 to 1 with business owners and teams. He provides video coursework and has a private group of Entrepreneurs he serves. Don Williams Global has clients around the world.
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