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A Sure-Fire Hot Profit Making Tip

How would you like to quadruple your percentage net profit in your business? It can be done and is being done every day by shrewd business owners.

If you sold a product or service for 0 dollars and your total cost of bringing that product to the market was then clearly your net profit would be . What if you could double your price while only increasing your cost to market by ? Your profit would quadruple profit from to 0 dollars.

This is attractive but is it possible?

Let me tell you from my own personal experience in business that I have double the price of services while halving their cost to market, and the client won all the way.

Point 1: For most businesses these days the major cost of bringing their product or service to the market is marketing.

Point 2: For most businesses the key factor that determines the price they can collect for their product or service is the potential clients' perceived value to themselves of that product or service.

Point 3: If you can increase the perceived value at a greater rate than you increase your cost to market then you have a system for increasing your prices and dramatically increasing your profit.

Most business owners are terrified by the concept of increasing their prices. They are afraid that they will lose customers, however, if it is done in the right way, increasing your prices will not only increase your profits but it will also make your business stronger and more secure.

The first step to this is to actually increase the amount of value your client receives.

Do you really know what your clients value about your product or service?

Do you really know how your clients would like you to improve your product or service?

Most businesses don't know the answers to either of those questions yet these are answers that could help you increase, in the eyes of your customers, the value of your product or service.

Rather than shaving your profit margin why not increase it by finding out how to add value, cost effectively, and then do it and increase the price accordingly.

At the end of 2001 I added a one-to-one mentoring program to the services that I offered clients. The clients for this mentoring were mostly professional investors. I charged 0 per hour for this mentoring. At the end of 3 months I surveyed everyone who had attended mentoring and I asked three simple questions.
1.) What do did you like most about the mentoring you received?
2.) What did you like least about the mentoring you received?
3.) Do you have any suggestions for improving my mentoring?

Based on the feedback I received I made three changes. I allowed clients to record the mentoring session. I started booking an unadvertised 90 minute slot for each 1 hour session thus allowing clients to run over if they wished. I also allowed these mentored clients to work with me as unpaid volunteers at any of my courses that they wished to help out in.

Then I increased my mentoring fee from 0 per hour to ,000 per hour.

The improvements had cost me nothing and I was now earning ,000 for the allotted 90 minutes (a rate of over 0 per hour).

What do you think happened?

The demand for mentoring increased dramatically because my clients felt that they were getting great value and when they helped out at the courses they couldn't help but tell the students how great mentoring was.

The demand soon outstripped the time I had available to mentor and over the next 12 months I had to increase the price twice, to ,500 then to ,000 in order to reduce the demand to manageable levels.

The second step in the hot profit process is to make potential clients emotionally aware of the greater value you are offering.

Once you increase the value that you are providing, you then have to find a cost effective way to let potential clients know about this increased value. (With my mentoring this happened as a word of mouth by-product.)

The ways of doing this are endless.

One of the more creative ways that I have seen was by a men's clothing store.

The store owner researched to discover what top earning business executives wanted from their "ideal" clothing store. He then created that business, at very high profit margins.

He shifted from an open door street front location to a locked door office building location. To unlock the door and gain entry you required a membership card. He made membership "invitation only" and included as a condition of membership that each member "invite in" one appropriate client per year.

People love to be members of exclusive clubs and they like to have the power to invite their best friends and colleagues to be members with them.

The store owner's profits rocketed.

I wonder what you could do in your business?


About the Author: James Delrojo would like to help you by giving you his
ebook "Unleash the Success Power of Your Mind"
(valued at ) completely FREE.
Go to http://www.YourSuccessMind.com




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