Setting Prices (Part 2)

Here's the continuation of yesterdays sales training:


Today I'm going to show you a formula you can use, that
makes increasing your prices a no-brainer.

In fact, this makes things so easy, if you're the daring
sort, you may go out and increase your prices by 50% or
more, immediately. And the good thing is, in many cases,
doing this allows you to work less.

Here's the deal. An early lesson I learned from one of the
people who brought me up in this business, was that we're
all in the numbers business first, and the marketing
business, second.

This is why, for example, if your numbers are bad to begin
with, good marketing can't help you.

So for instance, if you're selling a ten-dollar item and you
make 3 dollars on it, and you have nothing else to sell...
well, no matter how good your marketing is, it's going to
be pretty difficult to get rich in this particular
business.

Make sense?

But assuming this isn't your problem, let's take a look at a
formula you should consider before you do anything else
with your prices.

Most people are concerned that when they increase their
prices, they're going to lose customers.

And reality is, sometimes you will lose customers. But how
many customers can you afford to lose?

Chances are, you can afford to lose a lot more than you
think.

For instance, if you increased your prices by 50%, you could
lose up to one-third of your customers, and you still
wouldn't take a haircut on compensation.

So say you're making $400 dollars per customer and you had
42 customers. That's $16,800 in total business, right?
Well, if you increased your prices by 50%, to $600, that
means you can lose 14 customers and you'd still be making
that same $16,800. ($600 x 28 customers = $16,800)

Increasing your prices by 50% means you can lose up to 33%
of your customer base, and you still wouldn't be losing
money. In fact, you'd be working one-third less and
earning the exact same amount of money. Which is a good
thing, right?

Say you increased your prices by 100% - bumping your prices
up to $800 means you can lose up to HALF your customers and
still be making the same thing. ($800 x 21 customers =
$16,800)

Now that's REALLY cool, isn't it?

See, increasing prices using this formula makes your
decision to do this (or not) much easier, doesn't it?

Simply back into how many customers you'd need to make the
current amount of money you're making, with your new,
higher price, and then make your decisions accordingly.

Now remember, a lot of your decision-making about increasing
your prices, has a lot to do with what we talked about
yesterday -- whether or not you make the lion's share of
your profit on the front-end or on the back-end.

So think things through, and make sure you're not raising
prices up-front, only to lose customers on the back-end.

But no matter what you do, just... do something.

O.K.?

Now go sell something, Craig Garber

P.S. Raise prices all you want -- when you can use
emotionally compelling sales copy to get your prospects to
say "Yes!," you are in total control. See it at
http://www.kingofcopy.com/seductive

Discover the 11 components you must include, when writing a
sales letter or free report, this month at
http://www.kingofcopy.com/ssnl - Free 30-day trial all
yours.

Check out all the King's products at
http://www.kingofcopy.com/products

Comments? Leave them here on my blog -- I want to know what
you're thinking: http://blog.kingofcopy.com






(c) Copyright, Craig Garber & kingofcopy.com(R) 2008

Craig Garber
kingofcopy.com (R)
3959 Van Dyke Road #253
Lutz, Florida 33558 USA
813-909-2214 Phone
954-337-2369 Fax
cgarber@KingOfCopy.com
http://www.kingofcopy.com

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