Why Now Is The Time To Raise Your Price!
Have you heard of the placebo effect?
That’s one reason you should raise your price now.
I’m not joking
There were studies done on how the placebo effect works and it’s proven that it truly does work. Where it gets very interesting is when the placebo effect is brought into the mix with price.
It has been reported from studies that price will be a factor on pain as well as quality. For instance, if you gave out pain meds and to one group you sold them for $2.50 a pill and the other group you sold them for .10 a pill… the folks who bought the pain meds at $2.50 will have better pain relief than those at .10.
I know it sounds crazy but it’s true.
The same holds true with quality. Think about when you buy a pair of shoes or a pair of jeans. There’s an unconscious thought of quality or cheapness based on the price tag. If you bought a pair of shoes that costs $5, chances are you will already have a preconceived notion that those shoes are junk or low quality. On the other hand if you bought a $100 pair of sneakers you expect a certain amount of quality.
That same thing happens to everything. These are split second decisions going on in our minds when we buy.
Those are just a few of the reasons you should consider increasing your price.
Let me give you another pretty drastic example.
If I were to offer you my Profit Leak Audit for $250 you probably wouldn’t value that as much as if I offered it to you for $25,000.
I would bet that you are asking yourself different questions in your own mind at each of those price points.
At the lower end you might be wondering if the low price point is congruent with low value.
On the other side, if you’re being charged $25,000 you want to know you’re going to get value. That’s a fairly large amount of money to separate from not knowing what you’re going to get. That’s a reason for risk reversal, but I’ll leave that for a different time.
For now, you’re wondering if you should consider a profit leak audit for that price… will you get $250,000 worth of value. Jay says he will help me find 10x the value. He guarantee’s it. Why not?
Now the question becomes that of affordability, what type of businesses I’m targeting and who can afford it.
Think about how Wal-Mart, Target, and Nordstrom operate.
They each appeal appropriately to a different audience. And each has a different price point of folks they target. But each can raise their price by 5%, 10%, or even 20% without too many people batting an eye. And that extra revenue goes directly to the bottom line.
Many business owners are afraid to increase their price by 10%. They think they’re going to lose customers. Sometimes you might but you have to evaluate if the increase in price brought you more ROI regardless of the lost customers or not. Many companies do it all the time without a problem. It’s up to you to test it and see how it works out for you.
So, in a nutshell you have different areas of price to look at. You should consider who your target market is demographically speaking, then you need to evaluate if you can raise your price and what the impact is to your bottom line.
Enjoy and prosper,
PS- Find hidden assets in your business. Get your profit leak audit now and uncover at least $50,000 in hidden revenue.