How to Increase Your Prices - Announcing 3 Steps on How to Increase Prices
Are you selling digital or physical products online? How did you decide on your tag prices? Did you check on your competitors and just followed suit? Maybe, you did a market research to determine the buying power of your prospects or just put random numbers on your tag prices just because you want to.
Most people decide on their products' tag prices based on the three scenarios that I have mentioned.
That is why, it is not a surprise that most of them are not making the kind of money they have hoped for.
If you want to increase your revenue, you should set your own prices where you can get as much as 100% profit from your products.
That would mean not following what your competitors are charging and sometimes, going beyond what your marketing research suggests.
This may sound a bit odd but let me explain further.
If you are selling $30-ebook and your production cost is $10, you make $20 each time you make a sale.
But this is not your revenue yet.
You will still need to consider your overhead costs including the money you spend for your advertising cost.
If you spend $5000 on your overhead cost and you sell 250 ebooks, you'll just break even.
So, what you need to do is increase your prices so you'll get not only your ROI but huge profit as well.
Here's how you can increase your prices: 1.
Offer high quality products.
If you want to charge more compare to your competitors, you've got to make sure that your products are way better compare to other products that are available over the internet.
They must be more useful and more valuable so your clients will feel that they are getting their money's worth.
2.
Increase your prices gradually.
You can't just jump from $250 to $500 on your tag prices otherwise; you'll surely lose your clients in a snap of a finger.
So, do trial and error first.
Increase your tag prices by 5% first.
If there is no significant decline on your sales and revenue, you can continuously increase your prices.
3.
Inform your customers ahead of time.
Before your new prices take effect, make sure that you let your customer base know about it.
Send email notification to your opt-in list and announce the price changes on your website and blog.
It would help if you can tell your customers and your prospects the reason/s why you decide to charge more.
Most people decide on their products' tag prices based on the three scenarios that I have mentioned.
That is why, it is not a surprise that most of them are not making the kind of money they have hoped for.
If you want to increase your revenue, you should set your own prices where you can get as much as 100% profit from your products.
That would mean not following what your competitors are charging and sometimes, going beyond what your marketing research suggests.
This may sound a bit odd but let me explain further.
If you are selling $30-ebook and your production cost is $10, you make $20 each time you make a sale.
But this is not your revenue yet.
You will still need to consider your overhead costs including the money you spend for your advertising cost.
If you spend $5000 on your overhead cost and you sell 250 ebooks, you'll just break even.
So, what you need to do is increase your prices so you'll get not only your ROI but huge profit as well.
Here's how you can increase your prices: 1.
Offer high quality products.
If you want to charge more compare to your competitors, you've got to make sure that your products are way better compare to other products that are available over the internet.
They must be more useful and more valuable so your clients will feel that they are getting their money's worth.
2.
Increase your prices gradually.
You can't just jump from $250 to $500 on your tag prices otherwise; you'll surely lose your clients in a snap of a finger.
So, do trial and error first.
Increase your tag prices by 5% first.
If there is no significant decline on your sales and revenue, you can continuously increase your prices.
3.
Inform your customers ahead of time.
Before your new prices take effect, make sure that you let your customer base know about it.
Send email notification to your opt-in list and announce the price changes on your website and blog.
It would help if you can tell your customers and your prospects the reason/s why you decide to charge more.
Source...