Pricing for profit

PricingFormula.com An Early Lesson About Pricing

That's me (Jeff Simon) in what could be best called the “sawdust tent” assembling some components of a playground I helped with. In my free time. :)

Recession, eh?! We're not in a recession, but darn close, Clinton says -Oregonian

Recession, eh?! Recession's root cause is consumer debt, expert says -Washington U of St. Louis

Recession, eh?! Consumers Say Recession, Data Not Far Behind -Forbes

Appropriate Rant This whole "recession" thing everyone's blathering about was merely fabricated by the media (you know, the people we trust to deliver the "news" to us) so they'll have more to, uh, g-r-i-p-e about while they assault us with election propaganda. Did you know that ABC, NBC, CBS and CNN have predicted 40 out of the last 2 recessions? - Perry Marshall

Appropriate Rant (continued) I'm not participating in the current recession and you don't have to either. Look, grow your business, buy your beer, go on vacation, live life as normal and ignore the prophets of misery. OK? - Perry Marshall

Appropriate Rant (continued) I'm dead serious about this. The recession IS a fabrication of the media, but becomes a sort of self-fulfilling prophecy. Because of the talking heads and all their cheery news, the Mortgage biz is nearly in Intensive Care. Yeah, some people are being affected by this. - Perry Marshall

If everyone else thinks recession, where's your opportunity? But is it really time to lie down on a steam vent and hope for better times? Or is there money to be made? -John Forde

Lesson from history Companies that had higher sales and net income during the recession of 1974-75 didn't touch ad budgets. What's more, they also beat non-advertisers in the two years after the recession ended. - Courtesy Copywriter's Roundtable John Forde

Another lesson from history According to McGraw-Hill, companies that increased ad budgets during the 1981 recession trounced competitors not just during the downturn, but for three years following. - Courtesy Copywriter's Roundtable John Forde

Bottom line about the Recession A lot of mental real estate opens up when recessions hit. Competing marketing messages grow quiet. But consumers still need solutions. Translation: They're still willing to buy. -John Forde

The problem
Chained to your business
No oversight for your employees
No vacation without losing business
Pain in the a . . . neck (P.I.T.A.) clients

P.I.T.A. by the numbers $3.99 per delivery 100 jobs a day A few more jobs Approx Gross Total $450 / day

What did Rand get for his $3.99
A customer who was . . .
highly demanding
hard to please
quick to anger
highly disloyal

And on top of that . . . 90 day payment cycle!!! Whatever meager profit you do make is absorbed by having to carry your costs for 90 days!!!

Sometimes all you need is a change in mindset

Listen for how the quality of clients changes as the price goes up How does this relate to your business?

Important takeaway: Look how a mundane business like courier work can generate a profit center out of . . . practically . . . thin air.

Important Takeaway Raising prices leads to . . . Better customers

Important Takeaway Raising prices leads to . . . Service that's easier to perform

Important Takeaway Raising prices leads to . . . Increased profit gives you the opportunity to reinvest in your business

So what if you do not have the ability to quickly change your mindset?

Your price strategy options
High $$$$ information
Academic, but maybe not so practical
Fortune 500 clientèle . . . not you!!!

Few options available for the “rest of us”

More examples coming at: PricingFormula.com Sign up now!

Pricing for profit

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Pricing for profit Webinar Transcript