Don’t just add your usual profit margin

In todays economic sticky patch, it’s time to stop moaning and look at what you can do with your products and services.

2 examples from my experiences last week.

I was buying a gift for a friend’s engagement party and so I thought I would get a little something for their small town garden. In my mind, my budget was about $25. Looking through the gifts in the garden centre, I came across a wrought iron door stop with a big snail on it. Perfect. Looking at the price tag, it was only $9.95, which was a great buy, but in my mind, far too cheap for what it was. I would have happily paid $20 or $25 for it, it was a really cool gift. Now I’m not saying hike all your prices up, but look at what you think each item is worth as opposed to just adding your usual markup. This garden centre could have had even more of my money for nothing.

The second experience was very similar. A pampur session at the local beauty salon, in which I wanted a facial and pedicure. This was the receptionists chance to up sell me, after all, I had not asked the price of anything at this stage so money was not the issue. Instead, I had the “in between” facial, not the next one up. How come she didn’t even mention it? I was always told to start at the top price and work my way down, give all the options. It’s not her or anyone else’s place to decide if something is too dear.

How much is an expensive car anyway? Your idea may well be different to mine….

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