How To Price Your Services So You Always Have A Steady Flow Of New And Repeat Customers!
Now that you’ve purchased all or most of your necessary inventory or in the case of an extremely savvy service provider such as yourself. Are you now finally starting to appreciate. How to price your services so you constantly create a steadily flow of new and long term repeat customers?
You really do have far more untapped marketing or promotional opportunities than you may fully realize or appreciate.
In fact you can use strategically use initial -front end- discount pricing strategies. To create a consistent flow of first time customers. Who systematically refer even more new first time customers for literally pennies on the dollar.
Plus at least a reasonable percentage of your current and future customer base will enthusiastically become long term repeat customers as well. And in doing so. A certain percentage of them will eagerly become goodwill ambassadors. Who gladly sing you or your major competitors praises. Both on and off of social media. Entrepreneur can you live with that?
So How Do You Determine How Much To Charge For A Service?
Excellent question. But first you need to accurately answer this fundamental question. Does your product or service already have a reliable back end sales component in place?
If so. Then you should seriously consider discounting at least some of your initial front end gross profits. So you can systematically pocket all or 85% of your long term gross back end profits.
Because the vast majority of your long term gross back end will go directly to improving your bottom line. Whereas typically your initial gross front end revenue first goes to paying for your customer acquisition costs.
Typically anywhere from 60-80% goes to your traditional advertising or promotional costs. And you and your major competitors already know only too well. Your initial front end, razor thin margins are your current cause for far too many sleepless nights. Agreed? Not doubt.
Which is why now is the perfect time for you to flip the script. Huh? Meaning start strategically positioning yourself for some major long term growth. Sound like a plan or what? Good.
So What Type Of Market Tested Pricing Strategies Should You Or Your Major Competitors At Least Be Systematically A/B Split Testing?
Take the following example strictly for hypothetical marketing illustration purposes only. (And while you’re observing it.) Let your creative marketing juices start proactively looking at several of the previously untapped marketing or promotional possibilities.)
Let’s say you’re one of the senior marketing directors for an extremely popular women-s cosmetics and fragrances distributor. And you basically sell upscale women-s fragrances. And your three tires are. Lower, mid and extremely upper end.
So your prices are. Your lower level entry price for a 64 oz. bottle is typically $189 dollars. Your mid level 64 oz. bottle is $650 dollars. And your higher end 64 oz. bottle(s) typically start at $1,700 dollars each. Say what?
Which explains why your ideal customers. Which believe it or not also includes men who usually earn six figures a year and up. Who usually purchase these great smelling fragrances for their. Take your pick?
A.) Their wives.
B.) Their Moms.
C.) Their daughter(s.)
D.) Their Mother in laws.
E.) Their in laws.
F.) Their live in significant other.
G.) Their daughter in laws.
Since your ideal customers total lifetime customer value metrics are somewhere between $189 – $3,500 dollars. Give or take over the next five to seven year period.
Start Proactively Looking Around For Both Direct And Indirect Access To Your Ideal Customers!
Case in point. You reach or some of your top female sales reps or top female sales managers reach out to at least two of your areas top daycare facility owner(s.)
And initially you offer both the owners and their current and future female staffers. The chance to purchase a 64 oz. sample of one of your best smelling 64 oz. bottles of your lower end perfumes.
Which typically retails for $189 dollars. But as long as they join you or your major competitors opt in email or text message list. And simply for doing so. The get to purchase their lower level bottle of perfume at your actual hard cost. Say what?
And right about now you’re probably wondering out loud. Why in the heck would you or your major competitors do that? Correct? Elementary Watson. Elementary. Huh?
Stop and think about what you or your major competitors instantly gain. Both now and going forward. Both the female daycare owners and their current and future female staff.
You know they’ll be constantly coming in contact with other local women of certain affluence and influence correct? Absolutely. And not just directly through the daycare facility itself.
You Or Your Major Competitors Create The Right Type Of Direct Or Indirect Power Networking Opportunities! (And watch What Starts Systematically Happens Next!)
So you approach the daycare owners about periodically sponsoring, (100% finance) open house events. Where the daycare facilities current and future prospects can see/view the entire facility.
Plus at no additional costs whatsoever to the daycare facility. You or your major competitors will also throw in a popular local magician who will perform for the kids.
And get free exposure to other local parents. And they will more than likely pick up a few new customers each time. This being the case. The local magician is more than eager to offer you or your major competitors a nice 25- 40% off their normal retail rates. Huh?
Because they’ll more than make up for it on the back end with the new potential retail customers in attendance at this periodic open house event(s.) Which these periodic events will initially be tested at least 90 days apart.
So about one open house event about once every 90 days. And of course you’ll make darn sure every female staffer and the female owners of the daycare facility get to sample one of you or your major competitors best smelling mid level fragrances.
So as they systematically make their rounds during these open house events. They systematically expose tons of local women to some of your best smelling fragrances. And unlike your major competitors.
You won’t be constantly spending a fortune to do so. Sound good? Great. Get started discovering how to price your services so you always have a steady supply of
Let Your Major Competitors Constantly Rely On Having Extremely Deep Pockets!
P.S. Now as is customary during this part of our show. Please share your extremely valuable comments (in the comments section below)
that you can apply to your business, product or service in the next 30 days or less!
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