Let’s talk about MONEY, and why you should raise your prices… shall we?
As an entrepreneur… whether you run a big business, a small business, brick and mortar or one from your kitchen table…
… ULTIMATELY the amount of money you make will come down to the value you provide.
You know this, there’s nothing new about that.
But here’s the thing… with the onslaught of people who jump online, there’s a tendency that you’re supposed to GIVE AWAY your best stuff.
If you’ve been around internet marketing, I’m sure you’ve heard that, haven’t you?
And I must admit that for awhile I thought that by simply giving lots and lots of stuff away I’m providing lots of value.
NOTHING Can Be Further From The Truth…
As a matter of fact, when you simply give stuff away, not only are you losing money… but you’re not helping a soul.
And don’t you let these freeloaders who try to guilt others that we should give them stuff change your mind.
Here’s Why You Should Raise Your Prices
Back in 2007 or 2008 there was some kind of a promotion that a very savvy marketer, someone who really knows his stuff… and he was GIVING AWAY (for a tiny shipping charge) a few of his really top notch seminars, as a lead generation for something bigger he was doing.
One of these recordings was an absolutely kick-butt copywriting workshop. Which is about creating sales ads, in case you don’t know what copywriting is.
Anyways, I buy everything (almost), and unfortunately sometimes more than I have time absorb. So like a lot of people, I set this little package on the shelf with full intentions of getting to it and… well it’s still sitting there.
Recently I was looking for something through my big swipe file of ads and found this guy’s sales letters and recalled that I have all these programs.
So I popped them into my iPhone and OMG it’s got some serious money making stuff.
There is probably over 100 hours of nothing but marketing gold there… and the Copywriting Workshop has about 15 hours of really advanced stuff from some of the big boys.
I’m not even half way through, and I have to go back and listen to it again to take some notes.
Knowing what’s on these audios…
… I Would Have Gladly Paid $1000 For These And It’d Be Worth EVERY SINGLE PENNY!
But unfortunately I paid only 5 Bucks in shipping for it.
Imagine, I had this stuff sitting collecting dust on my shelf for almost 8 years.
Now here’s the point…
The reason I didn’t crack this open is…
… BECAUSE I Only Paid 5 Bucks For It!
If I would have spend $1,000 to get this… do you think I might listen to it?
Point is… when you know it’s free (or almost in this case), you place very little value on it.
Which is why when you give stuff away… or charge too little for it, not only do YOU lose money…
… but your customer loses because there’s a very high probability he or she will never even use it.
When I was in direct sales selling financial services, and recruited others into that business… it used to cost $199 to get started, which paid for the licensing class.
And less than 20% of the people even finished this class.
And out of those who did, well over 80% NEVER DID A DAMN THING!
These numbers are pretty typical in network marketing, and we used to say… because it ONLY cost $199. If you spend $199,000 on this, you’d treat this business a whole lot differently.
So you see, when you undercharge you’re not doing anyone any justice.
Your customer loses.
Think about this little quirk of the human mind.
If you see something seriously under priced… like a car, a house, etc…. don’t you kind of go in the back of your mind…
… “what’s wrong with it?”
I mean sure we all want to get a deal… who doesn’t.
But we also associate price with value.
Not sayin’ that you shouldn’t ever give anything away or not to use the word “FREE” in your marketing… but that should only serve it’s purpose of getting attention or getting people to raise their hand, and under pricing or giving everything away SHOULD NOT be your entire marketing plan.
The big takeaway from all this is…
RAISE YOUR PRICES… people will GLADLY pay top dollar IF there’s perceived value.
You with me?
Good, now it’s time for you to seriously rethink what you charge and HOW your customers perceive what you do… as something valuable OR simply as another commodity they can shop on price.
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