Did you know there are at least a dozen ways you can raise your prices and your customers won’t even notice? Pricing isn’t all about logic. Our brains are programmed to notice some things while not even seeing something else that’s right there in front of us.
For example, if you sell something for $9.99 rather than $10 it’s a proven fact you can increase your sales anywhere from 5% to 15% all over a penny. Yet if change your price from $9.99 to $9.98 it doesn’t matter. That’s because $9.99 or $9.98 are simply rounded to $9 by the brain so it sees it as a $1 cheaper than $10.
To make the price increase on a product acceptable to the consumer just reposition that product. If you change the consumer’s perception of the value they are receiving they will gladly pay more. For example, a B2B newsletter that sells for $500 easily gets subscribers because they compare themselves the $8000 consulting fee they might otherwise pay, making the B2B look like a great bargain.
You can change your packaging and you can often ask more for your product. This simple strategy can be implemented on your website in no time at all. Change the wording, change the packages you offer, describe your products differently. It takes such a small amount of time, you can increase your price, and your customers will gladly pay it.
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If you have what’s referred to as a customer retention program learn how to make small changes to your program to improve the perceived program’s value, while lowering your out of pocket costs by changing what you give away. In essence they get less but pay the same so its equivalent to a price increase.
Your competition also offers you opportunities to increase your profits. Every time the competition makes a price move they give you the same opportunity. When used right you can increase your profits, while always remaining competitive.
For example, let’s say you sell your widget for $4. If the competition sells theirs for $4.50 but increases their price by 20%, you can follow suit and still be the lowest priced widget and remaining the most competitive priced item while still improving your profit margin.
Increasing your price is a task that can be undertaken with great success when done strategically. It’s all in how you present those price increases to the consumer.
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