We all want more money. You hear business gurus regularly chanting ‘cash-flow is king’ for good reason… without cash its game over!
It’s not just about revenue of course. Without a tight grip on profits you might be pouring the pounds into a leaky bucket but let’s start with revenue and go from there.
There are 4 keys I want to share that you might be overlooking that have a direct and measurable impact on your bottom-line.
Your position in the market will dictate the price you can charge. Are you seen as leading the field? Are you the platinum option? Do people approach you as a commodity or as a necessity?
The great thing about of all of these positions is that they are just perceptions. You create them in the mind of your customer by… your reputation… your brand… your marketing… your customer service… etc.
In his book ‘Oversubscribed’ Daniel Priestly talks about how a small, savvy selection of businesses create their own economic conditions by controlling the perception of supply and demand. We always pay more when there is more demand than supply. So these business engineer themselves to be oversubscribed: read the book– its ace!
How can you tout for new business without being seen as ‘needy?’ Can anyone join your programs or do they have to apply? Do you work with anyone or do you have a strict velvet rope policy?
How can you emphasise the value of your service? Better, quicker, more guaranteed results, more impactful results?
This leads into the 2nd Revenue-boosting key…
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Part of what positions you in the marketplace and your customers mind is your price. Now obviously price needs to be set to ensure an adequate profit but also your price reflects where your customer places you on the invisible value continuum. It also reflects how much they will emotionally invest in your services and, most likely, the kind of results they will get from engaging you.
If you charge low prices you will tend to attract people who pay by price rather than by results.
A lot of business owners use the word ‘free’ a lot. You’ll get amazing free gifts, free bonus features, free reports etc. This can work great for lead generation tactics but think about the kind of conditioning the repeated use of ‘free’ causes.
We’re already entering the age when ‘free’ has lost a lot of its power and people are rightly more wary of anyone who uses it. If you do offer discounts or ‘freebies’ don’t make them predictable. Don’t train your crowd to expect price drops several weeks after a product launch or you will never charge top sterling for anything.
When it comes to pricing just remember that someone once stuck goggly eyes on a pebble and started a multi-million dollar ‘pet rock’ business.
Or why not order some Kopi Luwak coffee? The beans are passed through the digestive system of an Asian Civit Cat and so they fetch a higher price than regular coffee beans… :/… yep. It’s all perception. Your service has the value you place on it and the price people are willing to pay.
Make the rubber meet the road…
Don’t just read this blog post. Use it.
“I am going to implement these first 2 revenue-boosting keys by using the following 3 tactics in my business in the next week…
“What are 2 ways you can boost your positioning in the marketplace?”
i.e- seek endorsement by an authority figure or celebrity, write a book, highlight unique strengths and experiences, create a category of one….?
“How can you improve your pricing strategy?”
i.e- create a premium price service, raise price and give strong guarantees, market to a more affluent demographic…
I’ll catch you soon in part 2 with the final keys to boosting your revenue.