Which Pricing Strategy Maximizes Profits?

Are your prices so high that they scare away customers and  reduce your sales?
– or –
Are your prices so low that they’re killing your profits?

You know the problem all too well. The less you charge for a product or service the easier it is to sell. More sales are a good thing — but every time you reduce your prices you shrink your profit margin.

I bet you’ve heard the line, “If you sell for less, you’ll make more by selling higher quantities.” And that’s true– if you’re Walmart and sell massive quantities. For we small to mid-sized businesses with limited ability to cut our overhead, it just means lower profits.

What’s the alternative to reducing your prices?
Find the answer here >>

You could focus your marketing on moving your high-priced and high-profit items. But here’s the rub. It’s harder to get people to buy expensive products and services, so you sell fewer of them.

If low prices kill your profits and high prices reduce your sales, where’s the sweet spot?

What’s the product and pricing strategy that works to maximize your profits? Get the details here >>

The successful strategy is simple but powerfully effective. Don’t think about pricing each product or service individually, but think of you product or service offerings as a team.

Every professional team has its high priced players. They’re the superstars who make the touchdowns, make the goals or pitch the no-hitters. They’re the ones that attract fans and bring in the profits. But put them on the field or court by themselves and they’d lose in a New York minute.

Every superstar needs a supporting team. He or she needs a teammate to feed him the ball so he can sink the shot, a receiver to catch his winning pass, or someone to pass the soccer ball to her at the critical moment so she can kick it in and score.

Ready to discover how to eliminate objections to price and make more? Find out here >>

To maximize your profits and win with your business, your products and pricing need to work as a team too.

How can you win with your business?

Get Your Primary Objective Right
Let’s get it straight. The objective for most small to mid-sized business owners is not to maximize sales of the low-profit items. The goal is to maximize sales of those products and services that make you the biggest profits. How do you do this?

First, prove to your clients that your products and services have high value. Lead with a free offer or a low-priced product to get more new clients in the door and then up-sell them on the higher priced products and services.

The corner gas station in our one stoplight town understands this. People pull in to buy gas (which used to be a low-priced item) and then when they need a new muffler, tires or tune-up they already know and trust the station and are willing to pay hundreds or thousands of dollars for the expensive repair.

Pick The Players (Products and Prices)

Every business needs low-priced items to get new clients in the door. Depending which business you’re in, you can provide the ultimate low-priced item, something for free, to get people to contact you.

Obviously giveaways, or low-priced items won’t make you the money you want to send your kids to college or buy your retirement home, but they will grow your list of qualified buyers. The more qualified buyers who know and trust you, the easier it is to sell your high-end products and services.

The key in selecting your products and determining pricing is to offer a range from low to high so that you can appeal to a wider range of buyers and lead customers into the sales process. The range of prices and choices satisfies the need many customers have to trust you before they purchase at your higher end.

Want to appeal to more buyers and make more money? Use this strategy >>

Have a Game Plan

I have one client whose lowest priced service is $8,500. And that’s a killer for many potential clients. It’s just too much to charge before you’ve built a good relationship.

Provide a Range of Options

One of the things that’s 100% clear about a new client or customer is that their buying behavior is unpredictable. You don’t know whether a buyer is likely to only want your lowest priced item or your highest priced one. That’s why you offer options. Most will start out at the bottom but others will buy at the top. Give them a range of options and choices to help them get to know you and trust you.

Don’t let your product lineup and your prices kill your profits or your sales. Get in the game by focusing on the right objectives, picking the right players and using a game plan to maximize your income.

To your success,

Charlie

P.S. Get your products and pricing working together as a team, from your supporting products to your superstar profit generating ones. They won’t do it by themselves, so you’ll need to know how. Here’s how >>

P.P.S. One of the first things I do with my mentoring clients is to review the range of products and services they provide and their pricing. Typically, with a few simple changes, this is where they can pick up an additional $10,000 or more in revenue in the first month. Do you want to add that kind of revenue this month? Start here >>