People often overlook how easy way it is to increase their business’s profits margins. Most people tend to undercharge for their services, so try increasing your prices, as a test, and see what happens. Funnily enough, most people perceive something that is higher priced as being of higher quality, which can encourage people to buy your product or service. As you increase your prices, you’re also receiving more per sale, increasing your profit margin. Take this strategy a step further and target higher value clients.

For example, if you run a business coaching company, and you currently charge $200 an hour for your time, increase your rates to $1000.

With the perceived higher quality and value in your coaching, target businesses that make a lot of money vs. those that are barely getting by. In this example, one client would be worth 5 of your clients in the past. Not only have you raised your hourly rate, but you’ve decreased the amount of work you need to do to earn the same amount of money.

An interesting example we’ve had before is when we’ve sold courses or software for $7 vs. $497 vs. $997+. Although the $7 price gets the most conversions, the $997 price would almost always make tons more money. You just have to make sure you do a good job of showing the value!

So test out this simple tip and try increasing your prices and targeting customers who have more money to spend on your product/service.

For more easy ways to grow your profit margins and increase your sales check out this book: 50 Marketing Tips & Tricks Learned After $100 Million in Sales Over 20 Years!.

SOVEREIGNSOFT GROUP

Offers automated software tools for business owners, Authors, Trainers, Influencer/Blogger, Speakers and Affiliate Marketers who want to 10X their growth through Lead Generation, Social Media Exposure and Facebook Ads.

50 MARKETING TIPS & TRICKS LEARNED AFTER $100M in SALES