Ep. 78 - Why Fear May Be Costing You Profits
You may be working harder than ever this year yet the profits just don’t seem to be there. In fact, your total revenue may even be up but the profits aren’t. Why is that? It may be a simple fact that you aren’t charging enough.
If you’re like the majority of businesses out there, your sales price is not high enough and it’s costing you profits. Now you may be thinking that if you sell enough volume that the profits will follow. How’s that working for you? What we see is that the low price just forces the business to work harder. And the kicker is the profits don’t increase. At least as a percentage of sales.
And if your net profit is less than 15% of total revenue then you have room to increase price.
Even if you realize you should be charging a higher price there is natural fear of raising prices for a variety of reasons. So this episode is dedicated to helping you get over that fear so you can raise your prices to where they should be and give you a better margin of time and money.
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Check out episode 5 on pricing strategies: https://www.powercouplesbydesign.com/blog/guaranteed-marketing-strategy-to-increase-profits
Join the 30 day marketing makeover for free:
https://www.powercouplesbydesign.com/30-day-marketing-makeover
Key Takeaways:
The faulty formula for making profits. Volume cures everything
Why you set lower prices than you should
Customers equate quality to price
Owner fearful of raising prices even when customers tell him it’s too low
Why are we so fearful of raising prices to what it should be?
Media talks about the greedy business owner
Why we’re afraid of raising prices
Afraid of price gouging
Afraid of complaints
Afraid of losing customers
How to overcome the fear
Look at the big picture
Employees to take care of
Your family to take care of
Customers to provide better solutions for
Realize you can’t serve every customer
Choose who to serve- target market
