Profits hack # 3 – Increase Sales and profits with this one simple hack- Increase your Deal size.
Deal size is basically Price and quantity. Has your customer ever told you that you are expensive?
You see, in their head, they are comparing you to someone or some brand when they make that statement. I would make the case that it’s your responsibility to influence what they compare you to
Firstly, Price anchor
A famous example is Steve job. When he announced the iPad, he said it’s like a laptop but it’s only a $1000. Now he established the price anchor and what to compare to. On whatever service you are providing you may want to try that.
So for example when I was coaching students they would pay very little, when I started coaching fresher’s I started getting paid little higher, when I started coaching manager got paid higher, with sales teams it got higher and executive even higher. The point is what are people comparing your services to. If you start talking about an executive coaching they have a mental ballpark picture of what that price is like. And if you talk about the training they have a different picture.
Prices anchor. What category do I want to compare my product or service so that the customer feels that they got a great deal. Remember it has to be believable.
Secondly, step pricing
Very often in company, if you improve a product a little bit. Especially if you have been around for a while the prices have been stagnant like you have quoted the same price for last five, seven, nine, twelve months.
Just consider stepping your price even by 10% it will make a big difference to your profits, sometimes all that needs to change is some messaging, Slight upgrade on the products but very often a 10-20% increase in price is possible. If you think about it fresh and not just continue with the inertia of the past.
The last one is the simple tool, Told and sold.
I learned this tool from a friend, how it works is, you list everybody you have as customer, all the products – ask yourself have I told them about this, have I reached out to them through webinars, emails and have I sold. There at least 2-4 products or clients that you have underserved or not reached out to. Remember if you’ve built Great products it’s your responsibility to share it with them and see if it’s a good fit
So use these three hacks and increase your deal size.