Discounts can easily destroy your profits....

If you sell your product or service at a gross profit of 40%:

• Offering a 5% discount means you need to sell 14% more volume to make the same dollar amount of gross profit.
• Offering a 10% discount means you need to sell 33% more volume.
• Offering a 20% discount means you need to sell twice as much!
• Offering a 30% discount means you need to sell four times as much!
• Offering a 40% discount means you don't break even no matter how much you sell!

These numbers also work in reverse. The higher your price, the less volume you have to produce for a given dollar amount of profit! Even a small price increase can generate significant additional profit.

We know what you're thinking: What if I increase my price so much that I drive away most of my customers? If you've done your homework and are providing more perceived value for your customers than you are charging, this won't be a problem. Even companies that have a monopoly in the marketplace are limited by that perception of value. When a business comes out with a new product or service and they are the first to market, they may be able to charge high prices initially. But those higher prices can't be sustained for very long. Other businesses will see those prices and develop their own lower-cost alternatives. Examples throughout history abound. And the higher the initial price and profit margin, the faster a competitor will come to market with a less expensive alternative. Don't let this possibility keep you from increasing your prices!

Instead, enjoy the additional profitability and reduced workload. Use that increased profit to BUY YOURSELF SOME TIME for the strategic work of reducing your costs, laying the foundation for growth, and researching new market opportunities. Reducing your costs ultimately allows you to reduce your prices while maintaining the same level of profitability, but you need time and money to create that value for your customers and for your business. Don't sell yourself short. You and your business are worth it!

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

Strategy tips to sell more products on-line…..

Product pages, blog posts, social networks, and newsletters are the various distribution channels that brands can leverage with compelling content. Using these channels in innovative ways is what sets companies apart from their competitors and how consumers decide where to spend their money. Your website needs to convey trust, rank high on search engines for visibility and be found by people searching specifically for your products with intent to purchase. Here are eight important strategies to improve your website’s content and help you more products.

     Analyze your competitors content as well as your own – Create a list of criteria to review other websites so your research is objective-oriented. Becoming inspired by how relevant websites use content in creative ways may shine a new perspective on problems you’re facing.

1.                           Which products are top selling and how are they marketed?

2.                           Is there an outstanding use of content that helps demonstrate product value?

3.                           What is the personality and tone of their content?

4.                           How is content being used throughout the payment process?

5.                           Are there any product reviews? – note what customers talk about.

6.                           Once a product is purchased, are there actions a user can take in the confirmation email for more engagement?

7.                           Do they offer any promotions, giveaways or host contests?

8.                           How are they using blog posts and social networks to promote their products?

9.                           What content and products are most prominent on their mobile site/app?

10.                     What could be improved about their content overall?

User feedback is the most direct method of knowing if users are grasping the intentions of your content. When users embrace your website and are receptive of your brand, it’s more likely they’ll have intent to purchase.

Survey existing and potential customers and let them know you appreciate their time with an incentive like a freebie, discount, or coupon to ensure you have their full attention. Your goal is to ask them questions that gather their thoughts on your products and brand.  Some sample questions to consider:

1.                           Do they understand the value of your products?

2.                           Did they find all the information they were looking for on your website?

3.                           What do they enjoy about your brand, website and products?

4.                           Do they have any feedback or requests for your products?

5.                           Do they find your pricing reasonable?

6.                           Why did they choose your product over your competitors? (if this applies)

7.                           Have they read or created any product reviews?

8.                           Would they recommend your products to friends and, have they already?

9.                           Did they share your products on any social networks?

What other websites have they purchased products from?

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net