by Siimon
18. August 2010 10:27
Here's an amazing, yet true story.
I knew a guy who owned a company that sold burglar alarms.
His sales people started out selling them door to door for around $600.
Then one day, he asked himself whether he could stretch that price.
So he moved it up to $700.
The result? He sold just as many alarms, but was making much more profit.
So then he did what almost no business owner ever does.
He kept lifting his prices.
First to $800.
Then $900, then $1000, $1100, $1200.
And still the customers kept on buying.
What price did he eventually stop at?
$1600!
So think about that.
He was selling a product for $600, then ended up making $1000 EXTRA PROFIT on every sale.
With no loss of customers!
There's a lesson in that for all of us.
The price of our product or service probably has a lot more stretch in it than we think.
Maybe it's time to lift your prices.
Hey, you can always bring them back down if it doesn't work.
But you'll never know if you don't give it a go.