PricingFormula.com

An Early Lesson About Pricing

That's me (Jeff Simon) in what could be best called the “sawdust tent” assembling some components of a playground I helped with.

In my free time.

:)

Recession, eh?!

We're not in a

recession, but darn

close, Clinton says

-Oregonian

Recession, eh?!

Recession's root

cause is consumer

debt, expert says

-Washington U of

St. Louis

Recession, eh?!

Consumers Say Recession, Data Not Far Behind-Forbes

Appropriate Rant

This whole "recession" thing everyone's blathering about was merely fabricated by the media (you know, the people we trust to deliver the "news" to us) so they'll have more to, uh, g-r-i-p-e about while they assault us with election propaganda.

Did you know that ABC, NBC, CBS and CNN have predicted 40 out of the last 2 recessions?

- Perry Marshall

Appropriate Rant (continued)

I'm not participating in the current recession and you don't have to either. Look, grow your business, buy your beer, go on vacation, live life as normal and ignore the prophets of misery. OK?

- Perry Marshall

Appropriate Rant (continued)

I'm dead serious about this. The recession IS a fabrication of the media, but becomes a sort of self-fulfilling prophecy. Because of the talking heads and all their cheery news, the Mortgage biz is nearly in Intensive Care. Yeah, some people are being affected by this.

- Perry Marshall

If everyone else thinks recession, where's your opportunity?

But is it really time to lie down on a steam ventand hope for better times? Or is there money to bemade?

-John Forde

Lesson from history

Companies that had higher sales and net incomeduring the recession of 1974-75 didn't touch adbudgets. What's more, they also beat non-advertisersin the two years after the recession ended.

- Courtesy Copywriter's Roundtable John Forde

Another lesson from history

According to McGraw-Hill, companies that increasedad budgets during the 1981 recession trouncedcompetitors not just during the downturn, but forthree years following.

- Courtesy Copywriter's Roundtable John Forde

Bottom line about the Recession

A lot of mental real estate opens upwhen recessions hit. Competing marketing messagesgrow quiet. But consumers still need solutions.

Translation: They're still willing to buy.

-John Forde

The problem

Chained to your business

No oversight for your employees

No vacation without losing business

Pain in the a . . . neck (P.I.T.A.) clients

P.I.T.A. by the numbers

$3.99 per delivery100 jobs a day

A few more jobs

Approx Gross Total $450 / day

What did Rand get for his $3.99

● A customer who was . . .– highly demanding

– hard to please

– quick to anger

– highly disloyal

And on top of that . . .

90 day payment cycle!!!

Whatever meager profit you do makeis absorbed by having to carry your costs

for 90 days!!!

Sometimes all you needis a change in mindset

Listen for how the quality of clientschanges as the price goes up

How does this relate to your business?

Important takeaway:

Look how a mundane business like courierwork can generate a profit center out of . . .

practically . . . thin air.

Important Takeaway

Raising prices leads to . . .

Better customers

Important Takeaway

Raising prices leads to . . .

Service that's easier to perform

Important Takeaway

Raising prices leads to . . .

Increased profit gives you the opportunity to reinvest in your business

So what if you do not have the abilityto quickly change your mindset?

Your price strategy options

● High $$$$ information

● Academic, but maybe not so practical

● Fortune 500 clientèle . . . not you!!!

Few options available for the “rest of us”

More examples coming at:

PricingFormula.com

Sign up now!