Affluent Clients Blog

How To Increase Your Profits By Charging More

2012 December 21st
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Many people I believe are undercharging for their products when they could be adding some additional features or services and charge more.

My research tells me that in a slow economy, the middle class may tighten their belt and cut down their spending and save more money. But the rich many times are less affected by a recession or a slow economy. They still have money and they still like to spend it if they think they are buying quality.

You might think that if you have a $10,000 product it will be way too expensive for people to want to buy, but you may run across a customer who thinks $10,000 is pocket change.

There’s also the concept of perceived value. If one lawyer is charging $25 an hour and another is charging $500 an hour, which one do you think comes across as having the greater expertise? Certainly the attorney that has the guts to charge $500 an hour must be better than the guy that only charges $25 an hour. At least that’s how our minds work.

Some people prefer to buy the higher-priced item because they think it’s got to be better quality.

There’s also the concept of status. Some people will spend money on the higher-priced products and services because they think it sets them apart from the crowd. It fuels their egos.

Some people want to be part of an exclusive club that caters to a special crowd.

If you can somehow position your product or service as being exclusive and difficult to get into, this may help you raise your prices.

You can set certain standards or qualifications that people must meet before you’ll consider selling to them.

You can take advantage of the concept of scarcity and let people know there are only a certain number of customers you are willing to take at this time.

If people feel there is a limited supply of something they seem to want it more.  They become afraid of missing out. Setting a deadline to buy or a limited supply can work to your advantage as far as setting a higher price.

Another concept regarding creating the higher priced product or service is the concept of a massive offer.

Can you create such an incredible offer that people will have a very hard time refusing it? What could you do to make your offer absolutely amazing? What could you do to blow your customers minds and over deliver? What could you do to take the work out of their hands and make everything very easy for them?

A good brainstorming exercise for you right now might be to take a break and write down on a piece of paper everything you can think of that you can do to create a massive offer.

What can you do to blow your customers minds? Write down everything you can think of that might be included in a very high-end product or service that you can offer.

How can you take the work out of their hands? What can you do to make things easier for them?

How can you make them feel important or even pampered?

What can you do to elevate their ego and make them feel like they are part of an exclusive club?

What can you do to help them leave a positive legacy?

What can you do to increase their pleasure and alleviate their pain?

What can you do to elevate their income? What can you do to increase the quality of their life?

The concept here is to give your potential customer the opportunity to spend more if they want to.  It’s a chance for you to over deliver and allow your customer to be part of the exclusive club that very few people can afford join.

 



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