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Increasing Profit Margins Will Not Hurt Customer Relations

By David

Why is everyone afraid of price? did you know that price is so elastic, you can sell a stick of gum – just one – for a dollar with the right message and marketing?

When we speak about price, we must think of the markets involved and who would pay for what we want to sell.

For example there are tons of different prices for bottled water right? We’ve got the bottles that cost a dollar, and those which cost 10.

It’s only water isn’t it?! Maybe they taste different. I know there are some I enjoy and some which taste like the back of a sweaty knee, but the fact of the matter is there’s a market for each type of water.

A market which ranges tremendously.

When it comes to pricing your services or products, what are your determining factors?

Is it what you think people would spend?

Or what you KNOW people will spend?

Guessing in most situations will put you in a box that’s pretty hard to get out of, especially if you can’t get out quick.

That box will help to determine your entire business, which could possibly destroy your chances of finding higher wealth within your business.

MEANING – go find the prospects that WILL pay higher for your services and cater to them.

You do this by getting into their heads and figuring out why they would pay higher for the service.


For Example: A head of lettuce to a lower income family may cost a $1.89 (no I have no clue what lettuce costs) yet, head on over to whole foods and you’ve got the special organic lettuce that is extra healthy and good for you with all the amino acids you need.

And this one costs 12 bucks, yet because it is so darn good for you (positioning) – the healthy bunch will pay for it.

So don’t limit yourself just to prices everyone has. What you do is watch everyone else in the market and increase your prices while positioning yourself to justify the price with a unique selling proposition.

This way, everyone has a specific reason to pay higher for you. Giving you the ability to demand higher prices increase your profit margins, sales and marketing budget.

Think about it, would you want to spend more to get higher quality clients? I sure would!
We can get more into that subject a bit later.

Hope this helps!

David Rosa