How To Price Your Offer

How to Price Your Offer

Why Pricing is Key in Making a Profit in Your Business

BUSINESS CASE STUDY FROM AN 8 & 12 YEAR OLD:

They put on their Bears jerseys and had a plan to sell snow cones at their brother’s baseball game.

I asked them how much they were planning to sell the snow cones for…

Their pricing decision was BOLD but it made EVERY bit of difference.

Initially, Natalie said they would charge $.50 for a snow cone.

Rocco agreed.

Then we did some math.

We tallied up their expenses. Most of their expenses were sunk costs i.e. we own the table, snow cone machine, power cords, and even had a bag of ice. But they needed a few more flavors.

Their COGS (cost of goods sold) was $9.50.

When I asked the kids how many they thought they could sell, they thought MAYBE 10…

Then I showed them how 10 x $.50 would mean GROSS sales of $5.00….and NO money in their pocket after 2 hours or more of hard work.

Natalie didn’t like that too much.
Rocco pointed out that NEXT time though, they would have left over syrup and ice and their COGS would be ZERO…

Natalie still didn’t like working for nothing TODAY.

I asked why not charge MORE.

They said how much?

I said how much would YOU pay for a snow cone on a hot day when there’s NOTHING else around and you’re stuck at a baseball game?

He said, $2 or $3…. 

We all agreed $3 might be a tough ask…not impossible but for their first run, a stretch. They needed to build confidence.

They settled on $2.

Their mother thought $2 was HIGH. MY mother thought $2 was high.

But the MARKET spoke loud and clear.

They had a tough time with their location.
No one could see them…

So Rocco walked the crowd and SOLD directly to the people.
Natalie locked down ops/customer service.

They sold 9 Snow Cones.
No one balked at the price.

They closed up shop a little early and chilled for the remaining half hour of the game.

9 x $2 = $18 gross

had they charged $.50 they would have grossed $4.50
had they charged $1 they would have grossed $9.00

Pricing was the KEY to PROFITABILITY 

Imagine what they can do when they’re location is in the middle of the ACTION and they get their system DOWN.

The race to the bottom (in pricing) is usually the RACE TO BANKRUPTCY…

Consider RAISING your prices, INCREASING value, and being efficient over lowering your prices to compete with “everyone else”.

Thanks Natalie & Rocco for an AWESOME effort and wonderful lesson!

I’m Matt Dubiel and I approved this message.

How to Double Your Revenue

How to Double Your Revenue

How Mattress Firm can double your sales/income this year:

 
matt dubiel double your revenue mattress firmThese are just a few of the MATTRESS FIRMS in the area.
Have you noticed sometimes there’s a mattress firm across the street from ANOTHER mattress firm?
 
There’s a reason for this. Some have rumored it’s because they launder money or something weird like that.
 
The truth is, sometimes people come up with kooky stories like that to explain away success they don’t understand.
 

Here’s why Mattress Firm is seemingly everywhere.

 
#1 The offer something every person needs. Everybody sleeps so they need to be available to everyone.
 
#2 Mattresses are not cheap. It’s somewhat of a high ticket investment. They do not need to sell that many mattresses to make enough to pay for more locations, overhead, advertising, and leave room for profit.
 
#3 Mattress Firm ADVERTISES constantly. They know they need to stay top of mind so when you finally decide to plunk down the big $$$ for that mattress THEY are the ones you think of, they are the ones you call, and they are the place you visit. And just incase you try to go somewhere else, you MAY have to drive past a mattress firm to get to the other guys.
 
#4 Mattress Firm has SOLID messaging. They know what to say to get you to think of them and buy. In fact, they know what to say to the majority of us who think we don’t need a mattress. Their messaging is “experts say you need to replace your mattress every 10 years”. Who says? Mattress firm says…and then they pay other people to say it. Then YOU hear it, and you say it to other people to.
#5 Mattress Firm is now committed to advertising. They threw their hat over the fence so to speak. Now that they have so many locations, they MUST advertise otherwise the whole thing comes tumbling down. Since advertising costs money, they MUST have solid messaging to recoup their investment.
#6 Mattress Firm has to be certain about their sales process. Since they’re pot committed to the process of lead generation via advertising, they MUST be sure their sales team is trained to handle the traffic and demands of the prospective customers.
It all started with a decision.
Mattress Firm decided: We are in the business of selling mattresses, so we need to tell everyone we can Mattress Firm is the place. We need to seed future customers with the idea that they should replace their mattress every 10 years. We need to be a leader in this marketplace.
What’s your decision?
Did you decide to wait for customers to come to you, by the luck of the draw?
If you decide you want to go after your future business and make things happen – I have a million dollar idea waiting for you.

The Riches are in the Niches – Why You Need DEEP Penetration

The Riches are in the Niches – WHY YOU NEED DEEP PENETRATION

Wide and shallow isn’t going to get it done for your business. Your social media, PR, blog posts, news articles and grand openings combined are all WIDE and SHALLOW.

To be THE GO TO, you need to go DEEP.

Get to the bottom of the ocean on your area of expertise.

Don’t DABBLE. Specialize and GO DEEP.

You and I can’t afford to go wide and shallow. That’s for Amazon, iTunes, McDonalds and Walmart.

“Something for everybody.” is NOT for you.
It’s even hurt McDonalds tremendously. Salads? Soups? PIZZA???

Once you take your eyes off of Cheeseburgers, shakes and fries…HERE COMES 5 GUYS.

When you feel the urge to make yourself more BROAD, fight that back and instead GO for DEEP PENETRATION.

That’s where the GOLD is. The gold isn’t 3 inches under the surface…it’s MILES DEEP.

When you decide to GO DEEP in your business, WE can go DEEP in your MEDIA and POSITIONING. Then it’s MAGIC time!

There’s GOLD in them there hills. Go DEEP and get it.