|Ðð©'§ Internet Marketing Information Library|
Raising Your Rates Can *Increase* Your Business
How many times have I heard literal horror stories from Internet business startups? Too many times to count! I get emails from those who just simply can't seem to make a living online. They've tried everything (according to them) and are still struggling to make ends meet.
At some point, the "conversation" always turns to price. That's where I find a lot of online business people making their mistakes. The common mindset among Internet business startups is that you have to keep your prices rock-bottom low in order to attract customers.
Nothing could be further from the truth! Raising your rates (in some cases) can actually increase your business. How so? Here are several reasons....
1. People Equate Price With Quality
I'm sure you've heard the expression, "You get what you pay for." That statement comes from a long line of lessons learned by people across the globe who have bought something at a discounted price and regretted it later.
Maybe the product was used. Maybe it was made with inferior materials. Perhaps a "discount" service they tried fell through and left them in a fix. It could be any number of reasons, but those who have tried the "bargain" or "discount" route and have been burned are quick to look for higher priced products and services. It makes them feel safe.
I know of several online business owners who raised their rates on the services they provide. What happened? For about one week it seemed they had made the wrong decision. Business all but stopped! However, after that "adjustment" period, floods of leads came rolling in. They never regretted it.
2. Customers View Higher Prices As A Status Symbol
It's true! I'm sure you've met some people who love to brag about how much they paid for everything they own. Their car was custom ordered from the dealer and cost much more than any old car chosen from the showroom floor. Their clothes reflect this season's latest trends and were purchased at full price from the expensive department store... NOT at an end-of-the-season clearance sale. I could go on and on.
The point is, many customers simply will not buy a product or service at a discount price regardless of how good the quality is. They have the "ability" to afford higher prices and are proud of that fact.
3. Many Believe Expensive Products Are Image Boosters
I actually heard this conversation in a department store once.
Woman One: "Look at this blouse! Isn't it wonderful?"
Woman Two: "It's OK, I guess."
Woman One: "But it's an Adrian Bloom blouse! I'm going to buy it and make all my friends jealous."
Woman Two: "Who is Adrian Bloom?"
Woman One: "I have no idea, but this blouse costs twice as much as that Liz Claiborne one so it must be the next big thing!"
Can you believe it? The woman had no idea who the designer was, but based on price, she decided it would enhance her image so she bought it.
The same is true of Internet shoppers looking for products or services. Those who believe being associated in some way with higher-priced businesses are more willing to spend money because they feel it will enhance their images.
The psychology of pricing is a complicated subject, and I'll be the first to admit that raising rates will not work for everybody. Before you raise your rates, consider the following:
1. Can you offer something better or different than your competition?
2. Will the rest of your business support the "branding" of a higher price? (i.e., Do you have a very professional-looking site, excellent service, and other elements that those who pay higher prices expect?)
3. Will the new pricing structure allow you to make as much, or more, money by selling fewer items at a higher price rather than many items at a lower price?
It just might be that the reason your business is struggling is that you're charging too little. Give some serious thought to raising your rates. It just might be the best thing you ever did!
Copyright 2004 Diane Hughes * ProBizTips.com
About The Author
Diane C. Hughes * ProBizTips.com
FREE Report: Amazingly Simple (Yet Super Powerful) Ways To Skyrocket Your Sales And Build Your Business Into A Tower of Profits! ==>> http://madmarketer.com/diane
Creative Offline Website Marketing Techniques
Although the vast majority of website traffic is the direct result of search engines, there are many offline marketing techniques that can be used to draw customers to your website. The examples listed below are but a few ways in which you can market your online presence to an offline audience in an inexpensive manner. Some of the examples listed below even can be implemented at no extra cost!
Viral Marketing: Is Your Website Infected?
Viral?Viruses?Infections?not pleasant subjects for most situations. Unless you're discussing Viral Marketing! Viral marketing techniques can help you create huge increases in both targeted traffic and customers for your website. In this article we'll briefly discuss some of the most effective methods of Viral Marketing.
The Tao of Web Marketing
A few months ago I was watching a stream meandering back and forth across a flat plain in a high mountain valley. The stream reached it's destination - a small lake - but only after dozens of loops and curves. It occurred to me that Water and clever Web Marketing have something in common - they both follow the path of least resistance.
Making Your Money Work For You ? And Not The Other Way Around!
Most people spend their entire lives working hard for someone else. What most people do not realize is that there is a better way. How about if instead of you working every day for your money, your money worked for you, 24 hours a day, 365 days a year?
Writing a Website That Sings!
If your online sales have taken a dip lately, your product or service isn't necessarily to blame. Even the best products and services can be hidden in obscurity when covered by a blanket of bad website copy. So what can you do to make sure your copy sings the praises of not only your product, but your business smarts and credibility as well?
The 9 WORST Internet Marketing Mistakes
Have you ever wondered how can you possibly figure out how to market your Internet business when you're bombarded with so much conflicting information? Lots of "how to" advice applies to many online businesses.
The Power of Buzz
How did Hotmail gain over 12 million subscribers in 18 months? How did the very low budget movie "The Blair Witch Project" become such an incredibly successful phenomenon? The answer lies in the power of "buzz."
Just Ask! Using Surveys to Improve Your Business
Viral Marketing, New Means of Communications and Applications
Viral Marketing and Communications, Buzz Marketing, and Word of Mouth
3 Link Exchange Methods
Link exchange is one of the many Internet marketing strategies aimed at:
Traffic, Money, How To Get There
Want more hits to your website or someone actually buying? This is a good question.
Hire An Internet Marketing Expert For Online Success
It never ceases to amaze me how many otherwise intelligent people set-up a website, without any type of plan or clue about how to promote it, how to write a sales letter, how to write an ad--nothing! Fact is, nowadays, anyone can have a website. But once you get one, then what? How are you going to make money with it?
Ways To Outsell Your Competition
Competition is fierce on the Internet. There are a multitude of people selling products that are similar to yours. How in the world you you get customers to buy your product instead of your competitors?
Many Small Revenue Streams Are Best
There's an old story about a guy who had a fruit stand. On the fruit stand there was a single orange with a price tag hanging on it. The price? One million dollars.
How to Tap the Profits Hidden in Your Internet Business!
I'd like to show you five secret strategies to extract profits hidden in your Internet business. Pay particular attention because any of these can boost bottom line revenue fast.
See Abundance In Your Prospects
I was privileged to have a good friend and great Internet Marketer to share this time-tested principle with me. And I am about to share it with you, too! The principle is called "abundance". Yes, abundance. It may be just one word yet there is great power behind it.
Do You Know the 3 Key Strategies to Using Lead Capture Pages?
Leads are the Life Blood of any Online Home Based Business. The Best leads are the Leads You Generate Yourself using Lead Capture Pages.
8 Myths About Online Marketing
These myths about online marketing. Seasoned marketers and beginners alike should think again what approach they should take when marketing online.
How Knowing Your Customer via Direct Marketing Helps Your Online Business to Prosper
What is direct marketing? Put simply, direct marketing is a process of recording information about your customer's response to a planned marketing activity.
Use Photos as Part of your Marketing Arsenal
Photos should be important parts of your marketing. The photos are useful
|Home | Site Map|
|Copyright © 2005-2007 - Ðð©'§ pcMedix Computer Group Help Sites. All Rights Reserved.|