Here’s my €8000 value post for you. Literally!
I study marketing at the highest level. And the courses I followed in school were not cheap. The Vlerick Business School in Belgium is a really expensive school. And there is a very good reason for it.
One of these courses that I took at the Vlerick Business school was a 3-Day class that cost me €8000. During this 3-day training, I learned about “price Elasticity”.
You may ask, why would this be so important?
Well, let me explain this to you in a way that you understand by real examples.
Let’s take a watch of €250 for example.
Imagine that your monthly sales are around 1000 sales each and every month. It doesn’t go up, but it also doesn’t go down.
Although I suppose that you want to make more money, right? And don’t want to feel stuck at this price range and profit marge.
Then ask yourself:
What if I increase my price by 0.5%. How many clients would I lose?
Or What if I increase my price by 1%, 1.5, or even 2% How many clients would I lose?
Realistically, you will lose maybe 1, 2, or 3 clients. But again, this is all with the purpose to increase your revenue. Enable for you to increase your price by a small percentage, you’ll see that your profits against it are still acceptable.
Not everyone will leave you immediately especially if you have that high-quality product.
But before you take any steps according to this strategy, it is really important that you calculate
[your price * your sales + extra % profits – the clients you’ll lose].
I did this once for one of my businesses, and that year only, we increased our revenue by €500.000 for each product.
So that €8000 course wasn’t really that expensive compared to what I have gained, Isn’t it?