If you want to make more money in your business you need to know how to increase your profit margins and that is what I am going to show you how to do today.
The way it works is you need to increase the value of what your customers spend every time. For example — if they currently buy only $100 every time they buy something, what if you got them up to $150?
It’s all about increase here and I have a 3 tiered plan to help you put that in place.
Let me give you a little example.
When I fly on British Airways when I travel to Canada, they have flights sold as “economy”, “premium economy”, and “Business Class”, and of course “first class”.
These seats are all priced at different levels. It’s a tiered plan. It is the same airplane, and at each level you will find better seats, better food, better earphones, etc.
But most of us know that British Airways makes most of their profit off the Business and First Class sections.
Those are upsells. Who among us would not love an upgrade when we fly? If we could afford it, we would do it more, right?
How about credit cards?
There are gold cards, platinum cards, premium cards, etc. Why did you get a gold car? It makes you feel better. It’s just a credit card.
Personally, I am an Am Ex platinum card holder and it works out great for me. I would not want to go back to being a regular card holder because I get great deals.
So what I am suggesting is why not add a higher tier to your product or service? If you are an accountant, why not label what you do as plan names? Like basic plan, silver plan, Business + plan, etc. Tier your services and people will pay more to have you work with them.
If you put the right branding on it, you will make people want to buy what you are selling– and in most cases, they will choose a higher level tier — so make it sound desirable and needed.
Drive Time Podcast
Today is Thursday and that means it is time for a drive time podcast. Today I am recommending Mixergy by Andrew Warner.
His show is one of the most popular interview shows out there and he has been around for a long time so be sure and check it out.
Tomorrow we have Phil Laboon on our interview series. Come and check it out. You will not be disappointed.