Here is a little food for thought that has worked for me. If you sell digital products, physical products or offer services, one of your main concerns might be how you position yourself in the market – or in other words – how much you charge compared to your competitors.
But let me let you in on a little tip. You are not in the “selling stuff” business (whatever that stuff may be), You are actually in the results and convenience business.
People want something that is either easier, better, faster or cheaper. So if your product is not cheaper than make it better! Do this by adding more value, whatever the product or service you are selling may be.
So how do you increase your profit margin in 30 seconds?
Easy. Charge More.
If you make money off your blogs, products, or you are an affiliate:
Sell a product that gives you a higher commission
If you provide services:
If you have an e-commerce website:
Set up a promo of some sort to increase how much you will make per sale.
If you are adding free shipping to your order then it is in your best interest to increase the amount ordered.
For example, If you are selling 1 item for $30. This Item costs your $10. Then your profit is $20. Let’s say you give free shipping and that cost you $5, then your profit is $15.
Ok now lets say you set up a coupon to Sell 6 for $100
6 items X $10 (cost per item) is $60 is your cost.
$100 (sale price) – $60 (cost price) = $40
$40 – $10 (free shipping) = $30 profit!
The customer gets more and you get more. Win-Win
At first it looks like you are losing money since 6 items @ $30 should make you $180 however that’s not true at all. You actually make more per order even though you are making less per item. Because the ONE sale makes you more profit. You can always order more products. So the products are not the issue. What you want to do is sell more of them.
Of course your other option for e-commerce is also just to sell a product that is more expensive. (Yet still easy to ship and not too heavy and provides good value to your customer). You can also couple products together as a deal or a gift basket. Like a Valentines day gift basket for example. This will also increase its value because of the results & convenience it gives people.
If you make it better for your customer by adding value to your product, making it much more convenient and making sure it generates more results, then you can charge much more for your product because people will pay for that. Same goes with your service, you can always charge more for better service and people will pay for that.
Think of it this way, would you pay for a cheap crappy neck massage while sitting on an uncomfortable chair that made you feel tense & awkward or would you pay more for a beautiful relaxing comfortable full body massage with the works (i’m talking hot oil, relaxing music, yummy cup of tea)? My guess is you would pay more for the better massage.
People will pay more for better results and convenience and they will be happy about it, so don’t be afraid to charge more if you can demonstrate this.