5 Marketing Moves for Business Success - And it hurts...
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And it hurts all parties involved. Lower prices always mean lower profits. Studies have shown that a 1% drop in price leads to an 8% drop in profit.
What happens when you double your usual price?
Several things. Prospects perceive:
* An increase in the value of your product/service
* An increased level of prestige in owning/using your product/service
* An increased level of trust in you - and all your other offerings (the halo effect)
* An increased level of confidence that your product/service really works
A marketing consultant that I respect once gave me a very valuable piece of advice. She said, "Be expensive or... be free." Being one of the most expensive providers of a service is remarkable - people talk about their $200,000 Italian sports car or $21,000 platinum-plated cell phone. Nobody talks about their $19,000 GM sedan.
I've helped companies double their prices, with great success, and I've helped independent consultants double [and in one case triple] their fees. In each of those cases, they got more clients, not fewer. Details on how to do this in Move 3. And perhaps this means you'll lose a few unprofitable clients along the way.
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