Is Your Business Marketing like Comparing Apples with Apples?
Comparing Apples with Apples
Most business do not differentiate their business from all the other business in the same niche. If you look at the picture below, you can see that it probably makes no difference if I buy apples from the left or from the right. You have no way of knowing if there was a difference.
In the example below we will show you exactly how you can increase your business profits by a massive amount and have happy customers along the way...
Are You Competing on Price?
A good strategy to increase profits is to increase prices. However, if you increase prices without increasing the value of your products or services, then you might have a problem. As you can see below, there is no reason why anyone would buy the more expensive apples on the right.
If your business competes on price, you are most likely doing what we see here.
Now let's add some value. As it turns out, the apples on the right are spray free, locally grown, tree ripened and come with a "crisp guarantee". We have now educated the buyer about the additional value our apples have on the right. Chances are we will outsell the cheaper apples on the left. The increase in price is justified due to the additional value.
What is the crips guarantee, I hear you ask? You probably also hate it when you buy an lovely looking apple and then take a bite and find that it is floury. We make sure our apples are fresh and crisp and if you find that they are not, we will give you another one or give you your money back. This is a big value add. Question? Can you do this same thing with your products or service?
Increasing the Average Dollar Spent
Now we can add our 2nd strategy. The best, cheapest and quickest way to sell more is to sell to our existing customers. If we offer 2 apples for $1.50 you have increased the value even more and at the same time increased your profit. Assume an apple on the left has a cost price of 10c and the ones on the right 20c. Previously we would have made 80c profit and now we making $1.10. This an increase of 30c, which is a whopping increase of 37.5% in profit margin.
This strategy is also called add-on selling and can be done in any business.
We can increase the value even more and at the same time increase our profit as well.
If we can sell 3 apples for $2, the price per apple is only 66c and so we have added massive value to buyers. Using the same figures from above, we now have cost of 60c and a profit of $1.40.
We have now increased the profit from 80c to $1.40. This is an increase of 60c which comes to 75%. Does this sound unreal? I can assure you that you can do this for any business. It just requires some clever thinking.
Increasing the Conversion Rate
How can we get potential clients convinced to buy our premium product?
We give them a taste. Once they have tasted how good our premium apples are, they will be much more likely to buy.
We help any business to achieve similar results. In fact we can guarantee it.
Do You Want Similar Results?
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How do we do that?
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