Join me on my latest Black Entrepreneur Blueprint podcast episode # 357 as I discuss the science behind pricing and profitability, and are you charging enough for your products and/or services. If you need to scale your business and increase profits, this is the episode for you. Visit www.BEBConnect.com
BLACK ENTREPRENEUR BLUEPRINT SHOW NOTES – EPISODE # 357
- Time is the most valuable commodity for entrepreneurs (never trade time for money – you will never scale your business). Make sure you guard your time wisely.
- Know the true value of your product or service don’t underprice – don’t be scared to charge what you’re worth – find the right clients for your products or services and speak directly to them.
- IDENTIFY and ATTRACT your target customer to who you can give the most value and who are profitable to your business. Stop marketing to and chasing bad clients – you won’t win. The reason you’re chasing and working with bad clients is that you don’t have enough good clients in your pipeline.
- Create your highest value offer first and then determine what other product levels to create (free, low ticket, mid ticket, high ticket) MUST HAVE ONE OUTCOME – This allows you to only have One Message (which is one message) – high ticket is 1 on 1 coaching, mid ticket is $997 course, low ticket maybe a book.
- Create your pricing to attract the people you want to attract – low cost denotes low value where high cost denotes high value and worth – who do you want to work with and does it make sense?
- Get rid of your clients that are not profitable, that are sucking your blood and costing you money and time – or automate that total interaction.
- Many times, low pricing can less beneficial to clients than high prices because they won’t have enough skin in the game to make them complete the program, etc.
- Solve a high-value problem and create a high-value offer (result must justify the cost) Example, if I can help you generate $20,000 a month in revenue – what is that worth to you 3K, 5K, 10K?
- Higher ticket products or services allow you to spend more money on ads – if I can outspend my competition for keywords and advertising, I’m going to make more sales (flat iron example) or if you have a platform your ad cost is free. That’s the problem of selling low-cost products and services. YOU MAY NEED TO REVAMP YOUR ENTIRE PRICING STRUCTURE.
- Understand the psychology of pricing and human nature – high offer – mid-level offer – low offer, most people will take the middle offer, so make sure that is profitable. Or you can be very specific and only have one offer and focus on that.
- Understand that you can’t help everybody, so focus on the people that really want the help and are truly committed to making changes (commitment in terms of investing in themselves). People want help, but human nature dictates that most people won’t do what’s necessary even with a lifeline right in front of their face.