Below is my chapter from the bestselling book Creating Business Growth. Within 1 day of publication Creating Business Growth became an Amazon Bestseller in 8 countries.
The fastest way to grow your business is to increase your prices. (<< Click to ReTweet This) This is hands down the most direct and effective way to grow your revenues.
No longer is the conversation centered around “Buy this because it’s your only choice.” It becomes, “which option would be best for you?” That’s a simple yet powerful difference.
To increase your prices and make more money than ever before, your focus must be on providing value.
And the more value you deliver, the more you can charge.
Once you adopt this approach, your revenue and income can skyrocket. Many of my clients have doubled and even tripled their revenues in months, not years, as a direct result of increasing their prices.
Tip #1-It’s Not About YOU
Okay, we’ve established that to charge more you need to provide greater value. So how do you do that?
First, you need to learn how to demonstrate and communicate the value you are delivering. The most successful business owners do so by following the approach below:
- They start by listening. To successfully communicate the value you deliver, you’ll need to discover your buyers’ biggest problems and the desired results they hope to achieve in choosing your product or service.
- They ask the right questions. To learn exactly what your buyer cares about most, you should ask as many questions as you can to discover the business impact caused by the problem they are experiencing. Use these questions to guide the conversation, and you will receive valuable information that helps you better communicate the value you are delivering. For example:
- What is the main area you’d like to improve in your business/life?
- What is its current impact on your business/life?
- How long have you been dealing with it?
- Why have you decided to deal with it now?
- Tell me more about your current situation (income/weight/health/happiness/morale, etc.) and how you’d like it to change?
- What are the greatest challenges holding you back from achieving your goals?
- What is the value of one new project to your business, and how much will dealing with this problem help you achieve stronger business growth?
- They determine real value. Once you’ve asked lots of good questions and have plenty of information, you’ll be able to determine the real value of your offering to the buyer. If your buyer wants to attract more clients, and one new client is worth $35,000, that’s critical information to know, and I’ll show you how to use it shortly.
- They understand the cost of standing still. When it comes to communicating the value you provide to clients, it’s easy to overlook the cost of staying where they are. In your buyer’s case, not only do they stand to gain from the benefits they’ll receive from buying your product or service; they’re also losing money every day, week, and month that they don’t change their situation and solve the problem they have. If your buyer wants better health, every day they don’t improve their health increases their risk of additional health problems. If they want to attract more clients and increase their revenue, every day they don’t take action constitutes lost revenue for them. If they are currently earning $20k a month and want to increase that to $50k a month, they are losing the difference with each and every month that goes by without action.
- They think and speak in terms of value, not cost. As you begin to understand the true value you are providing, make sure it’s in line with your pricing; i.e. if your product or service will save your buyer $12k (the value), you’ll have a hard time selling your solution for $41k.
On the other hand, if your offering produces $250k in value for your buyer, charging $41k is right on the mark. Later, I’ll share how to set your pricing to ensure the right pricing-to-return-on-investment ratio for buyers. Continue Reading