Hint…it’s option #1!
On Wednesday I received an email (actually I received 52 unfiltered emails and 277 filtered ones, plus an unknown number of spammed ones I never see)!
Well in this email the sender went on to try to tell me why it’s important to service more customers. Having more customers is great, don’t get me wrong! More customers means more work not necessarily more dollars in your pocket.
In the email the sender shared 3 ways to increase your revenue…
1) Increase your prices
2) Offer more products and services
3) Service more customers
The email went on to explain all the various ways to service more customers and get more customers to buy from you… and blah, blah, blah, blah! Boring!
Sorry, now I’m going on a rant!
If you wish to work harder servicing more customers by all means have a blast!
Maybe, if you’re lucky those extra customers will reach deep down into their pockets and reward your hard work with a shiny nickel.
Or, you can work smarter!
Choose option #1… Increase prices!
Is it risky? Maybe!
Will you lose customers? Again maybe!
Will you make more money? Definitely!
Will you work harder? Doubtful!
“Money is the byproduct of value creation”
If you can build enough value in your product or service, it truly doesn’t matter what your price is, you will always have someone willing to buy from you.
Here’s an example…
Bob and Louise both sell widgets.
Bob sells on average three widgets a week making $500 commission on each widgets.
Louise sells on average three widgets a month. She pulls in $2500 commission on each widget.
Louise was like Bob once, she wanted to work hard and build up her customer base and please lots of people. The only part was she was burning herself out trying to be all things to all people. She also wanted to enjoy life and frankly she wasn’t. She loved selling widgets, but knew things had to change.
She repackaged her pricing, and focused on clients who valued high caliber service.
Here’s where I dazzle you with numbers…
Bob makes about $6000 per month working 40 hours a week versus Louise’s $7500 per month working about half that time.
Bob is only making $37.50 per hour for his hard work and effort trying to service more customers. For her efforts, which she works about 20 hours a week, Louise averages about $93.75 an hour. Poor Bob!
Work smarter, not harder!
Create value!
Raise your prices!
Until next time,
“Live with passion”
Rob Anspach
P.S. A great book, that I highly recommend you read is called ” How to sell at prices higher than your competition”, by Lawrence Steinmetz Ph.D.
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