Pricing, the Key to Your Business Success

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Profits are the key to any business success. Pricing is one of the major elements to determine your bottom line
profits.

The proper pricing strategies will lead to more cash and profits in your business.

The biggest challenge I see in this economy is the knee-jerk reaction to cut pricing to bring in more sales. That only works if you have a great upsell process or lifetime value of a new customer or client after the initial sale. For example, the well-known story with one of Jay Abraham’s clients. He was consulting with a coin dealer and they wanted to increase sales. Jay asked if they bring on a first-time new client to collecting coins, on average once they make their first purchase how many times do they come back in the year to make another purchase. The coin dealer, said, “about 8-9 times on average. Once they get started they are hooked!” Jay was incredibly excited.

His strategy was to focus on getting new customers with that incredible back end. Let’s offer each new customer an incredible deal they can not refuse. Let’s offer each new customer for a limited time a 50% equity position in the first coin they purchase. Meaning, you will lose 50% on each new coin, not break even, but lose money! If the coin was worth $100, offer them only $50 to give them a win early on. The business owner thought Jay was crazy of course. But Jay explained the math of having 1,000 new customers and if each one invested 8-9 more times at full price in a given year, what the impact would be, it was staggering.

These may not be the exact numbers, but the business went from about $3 million in sales to about $150,000 million in sales in about 3 years! That is a rare exception to cutting prices, and even losing money on the front end to bring in a new client or customer.

Most small business owner may not have a product like this where the consumer is so passionate and addicted to the product or service.

Let me point out one of the most important components of price:

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The Master Checklist to Review Before You Ever Start Another Business

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You have one business up and running with some success and are considering starting another business and dividing your focus. Perhaps you do not want to put all your “business eggs” in one basket. What if one business slows down, and the other one picks up, you are protected. As you know the worst number in business is one, one vendor, one client, one affiliate, one bank account…does that mean one business? Not necessarily.

First, what are your reasons for starting another business?

Here is a list of some and let’s consider them carefully:

  1. The first business is not working.
  2. You found a new product in another niche that should bring in more revenue.
  3. You want to diversify into another niche.
  4. You see an opportunity in your current niche and starting a new business (more so a new company) to service this opportunity in that niche.
  5. Your business partner was lame and you started a new company and a new business perhaps in a similar niche to move on.

The first one is fairly obvious as to the concerns, yet, many fall into this trap. The first business (which was really never up and running as a real business) was not working, and the business owner got excited by another, different opportunity (the new shiny object syndrome). The challenge is that the second business and third will not work either because typically there was nothing solid in place on the first one. They half started that business and half started another business, lacking focus, consistency, and frequency… all leading to another failure.

Finding a new product in another niche can work effectively. Most successful entrepreneurs who were successful 5-8 years ago have a totally different main profit center today then what was in their business back then. They had to reinvent themselves and more importantly change with the times and look for new opportunities with the changing times. Those who continue to ride the same horse down the wrong path will just end up with more problems. You have to act and move quickly to be successful in business today. With NCP, our international market is the biggest new profit center that was not even in our business (or very little) 5 years ago. We expect it to grow dramatically over the next 12 months.

Wanting to diversify into another niche can work and can be expensive. Typically those who succeed are the ones who are already succeeding in their current niche.

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How to Accelerate Your Profits and Performance

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Today, is our next Top 5% Club monthly membership call on Tuesday, February 8th at 4 pm PST (7 PM EST) for an experience of true leverage to grow your business! I will interview Spike Humer, the CEO and Founder of Spike Humer International.

Spike is widely becoming recognized around the world as THE leading expert in engineering entrepreneurial success stories.

A master at exploding the profit and performance levels of companies, organizations, and individuals, Spike has generated tens of millions of dollars in new revenue for and with his clients.

Spike has transformed the financial and personal futures for audiences as large as 5,000 people throughout the world. He has personally worked with people and companies in over twenty-five countries in literally hundreds of industries and markets.

He is the developer of “The 10 Day Turnaround” technologies for business and life and is co-author of the book “The 10 Day Turnaround for Business”.

Spike has shared the speaking stage with some of the biggest names in business and personal achievement. He has been the “man behind the magic” of some of the most successful on-line product and program joint ventures of the last decade.

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Click here now to register for this powerful
Top 5% Club Preview Teleseminar
http://budurl.com/SpikeTop5
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