Thursday, April 26, 2012

Push up the price

I attended a seminar by Karin Klerfeldt the other day. She talked about taking proper charge and learning the business process and gave these valuable tips.
-Can we raise the price? she asked and answered her own question.
-Yes, a general conclusion is that you can raise the price about 20% - if they can sell! So how is it done?
·      Make a beneficial offer
·      There needs to be a market for you offer
·      Sell!
Some will think that it's too expensive, while others know you and your skills and are willing to pay. There are lots of different pricing strategies, but the most important questions you have to ask yourself are "how much do I want" and "how much do I want to earn." Write it down!
Either you can sell on high volume at a low price or on lower volume at a higher price, but you cannot do both. To stand out, you can not be somewhere in the middle. Entrepreneurs who dare to push up their prices will be tomorrow's winners. As an entrepreneur it is easy to get stuck in a low-price trap, especially if you shoot from the hip when they set prices and do not dare to raise the prices for fear of losing the customer.
It should be easy to sell and easy to buy:
·      Make a price list
·      Put together a package solution
·      Get yourself some business confidence
Forget the cold leads! When you get an idea for a potential business:
·      Schedule a customer visits with someone who might benefit from your idea
·      Make a sketch of your offer
·      Ask Questions
o   Is this the right person for the decision and who sits on the budget?
o   Is there room in the budget?
o   What is the time frame?
Follow-up with a tactics email within 24 hours (I’m pleased to hear that you feel we can do this together... I was thinking about what you said about...). Then:
·      Visit your customer
·      Present your offer
·      Go for closure
Follow up with an order confirmations immediately after your visit. This should contain a summary of what has been determined.
·     Invoice 

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