We are over halfway through this mini series now. I would love to hear from about whether it’s been helpful or not. If you’ve not had the chance to check out part 1, part 2 or part 3 yet, make sure you do!
Today we’re looking at increasing your profits through changing the price or cost, of your services or products. Seem like a no brainer? Maybe, but there are right and wrong ways to go about this.
The psychology of buying and selling remains pretty much the same whether you’re selling physical products or digital/information products. People like to buy things, and the like to feel like they are receiving value and not being ripped off. People will pay a lot of money for something if they think it’s worth it, and they will very quickly complain if they feel the opposite.
On the flip side of that, I have found that if you price a product too low, this can also put people off. I sell products on Amazon, and I frequently change the price of my product depending on how sales are going. The thing that continues to amaze (and please) me, is that when I reduce the price, it never increases sales. But when I raise the price it does! So whilst changing your price can increase the amount of money you make, this will only happen if your customers continue to buy.
So there are a few things to think about when adjusting your price.
Check out your competition
You should be doing this as standard anyway. It’s always good to know who your competition is, what they offer and how much they offer it for. If you are going to put your prices up, you will need to make sure what you are offering is worth the increase. If other similar products and services are generally more money than yours, you might get away with just increasing the cost and nothing else. However if they are a similar price to yours or less, you’ll need to know why yours is better so you can justify the increased cost. It is always worth going that extra mile and adding more value and worth, above what your competitor is offering. This makes you stand out from the crowd and can increase your customer base.
Get positive testimonials
Having genuine testimonials can help to establish trust and belief that your product or service does what it is supposed too and offers assurance that other people agree with this and recommend it over other similar products. To get genuine reviews people have to be familiar with your product, so this may initially be a cost to you. I have given my Amazon products away which actually costs me money, in exchange for honest reviews. If you can afford the initial cost, it is well worth it. I have definitely noticed an increase in sales with an increase in positive reviews.
Alternatively you can offer your product at a discounted price in exchange for reviews. I have recently been given the opportunity to attend a 6 week programme, at a discounted price, in exchange for a testimonial. The product will become available in the summer of 2016 and the previous testimonials gained will be used as part of the launch to boost sales right from the beginning.
Invest time and effort into your product or service
It is so important that your product or service offers quality. There is so much low grade rubbish out there today it’s actually ridiculous. If you spend time and effort into the design, creation and presentation of whatever it is you’re offering it will be clear. You will be able to ask for higher prices for it and you will get a reputation for offer quality. If you’re selling other people’s products as an affiliate, make sure you know what it is you’re selling so you can be confident you are providing your readers and customers with something great.
This is probably the most important factor. By having good quality products, that please people and make them happy when they receive it, you will get repeat customers, great testimonials and reviews and recommended over your competition. Then you can sit back and watch your profit grow!
I hope you have enjoyed this, as always feel free to comment with any thoughts or experiences’ you have. If you are looking at ways to get started with an online business, allow me to point you in the direction of my #1 recommendation. You can get started now for free and have a website up and running today – yes for free! Go take a look – here!
Bye for now 🙂