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Fastest Way to Increase Your Profitsby Editor

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Video Breakdown: 0:00 – 0:09 Introduction 0:10 – 0:38 Increase your prices 0:39 – 1:11 An example of prof it1:12 – 1:25 It adds up 1:26 – 1:58 Your action steps 1:59 – 2:05 Wrap up Andrew here f orLeanMeanMarketing.com. In today’s video I’m going to share the f astest ways to increase your prof its. Let’s getright to it.

What’s one of the f astest things you can do to increase your prof its? It ’s pretty simple – increase your pricesor f ees. I know that might sound simple and some people may even roll their eyes but the f act of the matter is,most small business owners and even less internet entrepreneurs ever review their prices, let alone adjustthem.

The f act is, if you’ve never increased your prices or you haven’t increased them in the last 12 months, inf lationalone is nicely eating into your prof it margin.

Let’s look at a quick example to illustrate the point. Just sayyou sell a product or services f or $50 and af ter all of youroverhead, your expenses, you prof it $20 which isn’t bad,that’s pretty decent.

Now just say you increase the price to that product by $10 sonow it ’s $60 which again is not a huge gap f rom $50-$60. Butthat $10 that you’ve added to the price to make it f rom $50 to$60 is all prof it. So the price of the product only increases abit, but your prof it raises substantially f rom $20 – $30.

Especially if you’re driving a lot of traf f ic or you have a lot ofcustomers, it can add up very quickly. Don’t think that what I’mtalking about just applies to physical products or serviceproviders, this applies just as much to inf ormation productcreators as well.

What are your action steps?

If you’ve never increased the price of any product or service, I highly recommend you review that ASAP andmake a 10-15% adjustment at a minimum. If you have any existing clients, if you’re providing services f orexample, you want to contact them as well and advice them that your rates are going to be going up.

You can do that through email and I would give them a grace period in locking your old rates just to keep yourcurrent customers happy. But again, don’t let that stop you f rom increasing your own rates because again itcould be substantial f or your own business.

Again, this is Andrew Hiddleston f or LeanMeanMarketing.com. I hope you f ound this video usef ul and I’ll talk toyou soon.