As entrepreneurs, building a profitable business is paramount to your success. If you don’t generate enough profits, you will eventually go out of business. On today’s Black Entrepreneur Blueprint podcast episode # 403, Jay discusses three simple techniques to increase the price of your product or service without changing it.
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BLACK ENTREPRENEUR BLUEPRINT SHOW NOTES – EPISODE # 403
On today’s show, I’m going to give you several examples of how to increase your prices without changing your product. I’m going to give you three examples for each technique – remember, there are only 3 types of things you can sell (digital products, physical products, services) Make sure you sign up for the BEB Newsletter to get all the show notes.
# 1 – SCARCITY
When there is a limited number of units or spaces available that makes people take action. Scarcity can be real scarcity like “while supplies last,” or manufactured scarcity like “this sales ends in 48 hours.”
Example physical product – Pappy Van Winkle bourbon: “The distillery only releases around 7,000 cases a year, which is approximately 84,000 bottles. The 23-year-old reserve goes for about $249, not to mention on the secondary market. Also, look at car prices and real estate prices, gas prices.
Example digital product – Let’s look at NFTs. Non-fungible tokens can digitally represent any asset, including online-only assets like digital artwork and real assets such as real estate. According to Sotheby’s NFTs are a paradigm shift for digital art and other forms of online media. They allow for online assets to have verifiable scarcity and ownership that cannot be manipulated. They bring the elements that endow physical art and assets with value into the digital realm. How do NFTs establish digital scarcity and ownership? The reason we refer to these assets as non-fungible tokens rather than non-fungible assets (or even digital non-fungible assets) is that they are uniquely made possible by blockchain technology.
Example of services – Top-rated plastic surgeons in LA. Limited availability allows them to charge higher prices for the same procedure.
# 2 ADD-ONS
You can easily increase your prices by adding on an additional product or service that has a high perceived value and not changing your current product or service.
Example physical product – A coaching student of mine increased her prices of her waist trainer by giving a free digital exercise program that focuses on losing weight around your belly.
Example digital product – An online course creator can add a free consultation to increase the price of his or her online course.
Example of service – A carpet cleaning business runs a promotion that says “get two rooms cleaned and we’ll do the third for free.”
# 3 CHANGE YOUR TARGET CUSTOMER from people who value saving money to people who value saving time
Target people that have an urgent need or urgent sense of desire to get this result. People that have money and resources tend to value their time more so than their money, so if you change your target market you can literally sell the same product for a much higher price.
Example physical product – I’ll use my flat iron brand as an example. The same flat iron I sell for $129, other companies sell for $30 to $40 dollars. I market a professional salon grade tool vs them selling a plain flat iron.
Example digital product – An entrepreneur sells the same course he started selling at $97 and now sells it for $1,900 and the only difference is the target market of people who want to get this result quickly.
Example of a service – A BEB family member had a personal training business where he was training all types of people from men and women of all ages and ethnicities. Now he’s changed his focus to working with only men of color and has raised his prices and improved his results.
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TODAY’S SHOW SPONSOR
Podcaster Weekly Newsletter
Today’s show is sponsored by “Podcaster Weekly – Build A 6-Figure Podcast.” Go to podcasterweekly.com and register for the newsletter. If you’re serious about building a profitable podcast, subscribe to “Podcaster Weekly” for all the podcast news and resources you need to build a 6 – figure podcast. Each week you’ll receive three issues filled with actionable content and resources including workshops, templates, and tools to build your business. On Monday, you will receive the latest podcast news and updates. On Wednesday, you’ll receive actionable steps and tools to grow your podcast. And on Friday we’ll share our favorite links for the week. Go to https://podcasterweekly.com/