By I’m on a mission today, it’s 9:15am as I write this email and I’ve already written three other emails this morning.
Yesterday, Holly got asked to do some work today down in London. Luckily her mum’s been staying with us for the last few days, and could stay until lunch today to look after Max.
Which means… I’ve got until lunch to finish all my work, and then I’m moving on to daddy duties (which are far better than work!).
Tomorrow we’re back at hospital to have Max’s stitches out and the settings on his shunt changed, and on Friday we’re at a wedding.
So this morning is literally my last time to get everything done this week.
Anyhoo… I thought I’d highlight something that most marketers forget.
Heck, it can boost your revenue more than almost anything else online, and yet most companies rarely do it.
Price changes.
Yup, as marketers we don’t think much about changing the prices of the products we market.
In fact, most companies spend less than six hours a year thinking about the pricing of their products.,
Yet… changing the price of your product can increase your revenue by as much as 30%.
Generally it’s recommended that a new company changes their pricing structure every six months, and more established companies every nine to twelve months.
Why?
Getting the right price means that you get the type of customers you want, your product develops correctly for those customers, and your brand is perceived in the way you like.
For example, lots of people think using a freemium model (where you have a free tier) is a good idea.
Yet for a lot of companies, particularly new companies, this is a very bad idea. Your free tier will, obviously, have the most customers. Most of those customers will be very heavy on support and not willing to invest their time in learning.
Which means… you’re spending most of your support time, supporting customers who aren’t paying you anything.
And that makes no business sense!
The only way to find out how to price for your product is by testing it and reacting to the new customers you get.
If you change your pricing every six months you’ll get a whole range of different customers coming in.
Do this for a few years and you’ll begin to see what price ranges the customers you want are in, as well as which convert best for your product.
Never be scared to change the price of your product, up or down, when hitting the right price point can increase your revenue by 30%.
Michael
What do you think?