As a small business owner or entrepreneur you are probably always on the lookout for ways to make more money. If you aren't you should be. After all... isn't the reason you are in business in the first place to make more money.
Opportunities to make more money are every where. Sometimes we just need to have our eyes opened to them.
A common trait for many entrepreneurial type people is to think in terms of creating something new (ie new business, or product, or service) without fully exploring the revenue potential of what they are currently doing.
Here are three ways you can maximise the revenue potential of your exiting products and services:
1/ Test Their Buying Limits - At the point of transaction you should implement a strategy to test their buying limits. McDonalds do this and you have no doubt experienced it... 'Would you like frys with that?'. Its a simple question that has contributed millions to their bottom line. When a customer (or client) has already made a YES decision then it is easier for them to say YES to the upsell offer. Infomercials also have perfected this... they advertise a low dollar value item typically but when you ring up to order they ask you if you would like all sorts of additional offers and upgrades. Imagine if just 30% say YES.
One of the best I have seen at this is Mike Dillard of Magnetic Sponsoring fame. Mike markets a $47 book to network marketers. At the point of checkout his shopping cart system then makes you an offer for an additional (related) product at a huge saving. Then there is another offer, then another and so on. Mike really tests your buying limits but think about it... you already have your credit card out and have over come the biggest barrier to purchasing which is FEAR.
So how can you test them buying limits in you business? What additional offers can you make at the point of transaction that could add a significant amount of extra profits to your bottom line?
2/ Change The Income Stream - Make a radical shift in the way people pay you for your products or services. Let me give you a great example... Diana Coutu owns Dianas Gourmet Pizza in Winnipeg in Canada. This is a pizza store unlike any others because Diana has many of her customers paying her a monthly membership fee. What this means is she already knows what income she will be banking on the first of each month before she has even turned on a pizza oven. Think about this... a pizza shop which has a large percentage of its income on a monthly membership basis. This is a racical shift for the pizza business.
Another way to think about this is the way you package what you sell. Instead of selling a product (ie pizza) or service, think instead of packaging up your products and services into a solution. Then sell that solution based on the VALUE to your clients as opposed to the cost.
Another great example of this is the online dating site Plenty Of Fish. The online dating business has been huge ($90 Million per annum in Australia alone). Typically in the online dating world you can join for free but if you want to interact with other members you need to pay a fee. Plenty Of Fish have come along and completely changed the business model and Income Stream. They provide online dating services free and monetise their business in other ways. Within a short period of time they have become the largest online dating business in the world.
Stand out and be different in your industry. Look for ways to completely change the Income Streams in your business.
3/ Put Your Prices Up - In a crowded competitive market place one key to certain failure is to try and compete on price. You are better off to become UNIQUE and command a PREMIUM price position. One of the first things I recommend to new coaching clients is to put your prices up.
Often I hear the comment that the type of clients I attract won't pay that much. My response... attract a better quality of client. This is a major mindset shift for some as it challenges their own personal beliefs about what they are worth in the marketplace.
The key point though is that there is never a lack of clients who will pay a higher price... just a lack of strategy on how to attract them. There is always an abundance of potential clients at all price points.
If you want to make more money then look for intelligent ways to put your prices up.
If all you do this week is look for ways that you can implement these three ideas then I can assure you that you will be on your way to making more money in the future doing what you are already doing.
Opportunities to make more money are every where. Sometimes we just need to have our eyes opened to them.
A common trait for many entrepreneurial type people is to think in terms of creating something new (ie new business, or product, or service) without fully exploring the revenue potential of what they are currently doing.
Here are three ways you can maximise the revenue potential of your exiting products and services:
1/ Test Their Buying Limits - At the point of transaction you should implement a strategy to test their buying limits. McDonalds do this and you have no doubt experienced it... 'Would you like frys with that?'. Its a simple question that has contributed millions to their bottom line. When a customer (or client) has already made a YES decision then it is easier for them to say YES to the upsell offer. Infomercials also have perfected this... they advertise a low dollar value item typically but when you ring up to order they ask you if you would like all sorts of additional offers and upgrades. Imagine if just 30% say YES.
One of the best I have seen at this is Mike Dillard of Magnetic Sponsoring fame. Mike markets a $47 book to network marketers. At the point of checkout his shopping cart system then makes you an offer for an additional (related) product at a huge saving. Then there is another offer, then another and so on. Mike really tests your buying limits but think about it... you already have your credit card out and have over come the biggest barrier to purchasing which is FEAR.
So how can you test them buying limits in you business? What additional offers can you make at the point of transaction that could add a significant amount of extra profits to your bottom line?
2/ Change The Income Stream - Make a radical shift in the way people pay you for your products or services. Let me give you a great example... Diana Coutu owns Dianas Gourmet Pizza in Winnipeg in Canada. This is a pizza store unlike any others because Diana has many of her customers paying her a monthly membership fee. What this means is she already knows what income she will be banking on the first of each month before she has even turned on a pizza oven. Think about this... a pizza shop which has a large percentage of its income on a monthly membership basis. This is a racical shift for the pizza business.
Another way to think about this is the way you package what you sell. Instead of selling a product (ie pizza) or service, think instead of packaging up your products and services into a solution. Then sell that solution based on the VALUE to your clients as opposed to the cost.
Another great example of this is the online dating site Plenty Of Fish. The online dating business has been huge ($90 Million per annum in Australia alone). Typically in the online dating world you can join for free but if you want to interact with other members you need to pay a fee. Plenty Of Fish have come along and completely changed the business model and Income Stream. They provide online dating services free and monetise their business in other ways. Within a short period of time they have become the largest online dating business in the world.
Stand out and be different in your industry. Look for ways to completely change the Income Streams in your business.
3/ Put Your Prices Up - In a crowded competitive market place one key to certain failure is to try and compete on price. You are better off to become UNIQUE and command a PREMIUM price position. One of the first things I recommend to new coaching clients is to put your prices up.
Often I hear the comment that the type of clients I attract won't pay that much. My response... attract a better quality of client. This is a major mindset shift for some as it challenges their own personal beliefs about what they are worth in the marketplace.
The key point though is that there is never a lack of clients who will pay a higher price... just a lack of strategy on how to attract them. There is always an abundance of potential clients at all price points.
If you want to make more money then look for intelligent ways to put your prices up.
If all you do this week is look for ways that you can implement these three ideas then I can assure you that you will be on your way to making more money in the future doing what you are already doing.
Rod Moore is a leading expert on Attraction Marketing for small business and the founder of Profit Minute. For a free copy of his 'One Page Marketing Plan' video and marketing plan template go to: http://www.ProfitMinute.com
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