iBizo – Business Blog

Having the right price for your product or service can boost sales for a home based business by up to 300% experts have found, use these simple tactics now to make more money and increase profits.

# Pricing Strategy 1 – Psychological Pricing

Marketing is all about persuasion and using a psychological trigger to get someone to buy from you, can be very powerful. Maybe you’re asking a prospect to take a free trial or to continue reading your copy but at some you are going to ask them to buy from you. Take a look at these prices for product XYZ:

a) $70.00
b) $69.99
c) $69.97

So which of the prices most appeals to you? It is obvious that anyone would choose lowest when presented with all three. However, if you were to test each price separately in your own campaign you would make many more sales at $69.99 and $69.97.

Testing has shown that more sales are made because we are drawn to the ’6′ rather than the ’7′, although there is only a small difference in the price in reality.

# Pricing Strategy 2 – Pricing on Demand

Whatever your costs and objectives are, the demand for your particular product or service will be of significant influence when setting a price. Where demand outstrips supply the seller finds it easy to charge higher prices. If you are in a high demand market it should be your objective to provide a good value for money product or service and not to overcharge customers.

Overcharging means they may not return for repeat business and losing customers after the first sale is not the way to long term profits for a home based business.

If you have a high demand product or service, but it is available from many other sources, building additional value into the proposition (not lowering prices) is the smart route to take to differentiate you and your business from competitors. You could offer:

a)Immediate delivery at no extra cost
b)Free Insurance on your item
c)A free bonus for acting quickly
d)A discount coupon off the next purchase

The idea is to build extra value into the deal that gives perceived added value to the customer and doesn’t cost you much extra to provide in real terms.

# Pricing Strategy 3 – Competitor Pricing

Keeping an eye on your competitors and watching how they market, where they advertise and the prices they charge are all important. However, basing your prices to match or undercut a competitor can be very dangerous to your overall business and your profits.

In a very competitive market it is only by doing market research and asking your own customers that will you find out to what extent your customer shops around.

Many businesses overestimate this factor and usually end up charging less than they should. Research has shown that short term sales promotions often get quick results but do not contribute to a company’s long term profits. There is a peak as soon as the SALE! SALE! SALE! Offer starts and then the sales graph flattens out.

The real answer is to survey your customers to get more accurate information rather than under-cutting competitors as a long term strategy.

What’s the Difference then between Price and Cost?

There is distinct difference between the ‘price’ and ‘cost’ and you shouldn’t let yourself get confused between the two.

* The definition of price is: The amount as of money or goods, asked for or given in exchange for something else (marketing).

* The definition of cost: The expenditure of something, such as time or labor, necessary for the attainment of a goal (accountancy).

Charge more not less and offer a better service, higher quality and the ultimate in customer service. Always have something that differentiates your home based business from that of your competitors and you will make money.

Adrian Kelly writes for www.instantdailyprofits.com. Discover an amazing step by step system that shows you how to make money online fast with an instant home based business in less than 30 days!

If you have a mortgage against your home, sooner or later you will surely consider taking a second mortgage against your present loan. But, prior to doing this, it would be a very good idea to take stock of all of your options. Before making up your mind, there are various components which you must consider-the most obvious one being the interest rate.

An important element that you must consider is the fee connected with closing down the present loan. Mostly, closing costs are awfully exorbitant. But, I’m sure that you, like many other homeowners, would prefer to select a low cost or no cost mortgage. Or you could even be thinking about a no fee refinance mortgage. A no fee finance mortgage is a innovative option that has cropped up on account of the escalating demand for more loans that are easy on the pocket. A no fee finance loan is, all in all, a loan where you don’t have to pay any costs when paying off the loan. All fees, such as an application fee, an appraisal cost, title search cost and/or closing charge are paid by the lender. A no fee finance loan, consequently, seems right if you don’t have the resources to pay such fees in advance.

Low cost or no cost refinancing agreements mostly have a much higher interest rate than a more traditional loan. The higher interest rate is used to make up for the fees that the lender has paid for you. Often, the rates are approximately a quarter and a half of a percent more than if you would have paid for the usual closing costs. Then again, it is crucial that you keep in mind that the majority of lenders will include the closing costs into the actual loan, if you don’t have the resources up front. This is normally all right if you have the equity in your house. However, if you are at the max for your loan value, it may not be worth it.

An added noteworthy element that you must consider is prepayment penalty. This will not be a bother if you continue living in the house as long as the loan exists. Nevertheless, if there is a likelihood of your moving out before the loan is repaid, it would be wise to ascertain in advance how much more you will have to pay to close the loan early.

There are also various added advantages to no cost or low cost refinance loans. Mostly, on account of the fact that this form of a loan is offered by a different section of your bank, you can get a greater loan, without paying for Private Mortgage Insurance (PMI). Private Mortgage Insurance can be very costly, but, on account of the fact that this form of a loan does not access points, it is worth paying a higher interest rate. A few banks may even offer you special deals on credit cards or checking accounts, if you currently have an existing loan with them. For instance, some banks may give you a greater checking amount. With a greater checking amount, you could save on check ordering fees and thus decrease your monthly service fees.

Practically every single bank provides low cost or no cost loans nowadays. But, you will have to take a few steps to be sure that you discover the most suitable offer. While examining various offers, make sure to consider the fine points of the loans totally. Although you may be paying a higher interest rate, compute how much you will save finally. If you do your research well, you may very well discover that a no cost or low cost loan is the option for you.

Taking a second mortgage at the time can turn your financial life around. If you are struggling to pay the bills or come up with the cash for a much required article then mortgage refinancing may be the solution to your problems. If you want to evaluate this avenue without the hassle of a mortgage agent across the desk from you then have a look at our site http://www.refinancingright.com

There is a man named Carl who works in the grocery store. He shows up early every day. He bags the groceries and gathers the carts from the parking lot. He is a sweet man and he is 74 years old. I feel sorry for him even though he certainly doesn’t ask for any sympathy. He says, “I’ve been a hard worker all of my life.” It’s true that he has.

Call worked for 37 years at an automobile manufacturing plant “good job”. He is still proud of that fact. Year after year, he showed up every day and performed excellent work. Throughout the sixties, seventies, eighties and part of the nineties, he worked for the company. He wasn’t good, solid employee. He dreamed of his retirement for decades. He saw himself having the freedom to do whatever he wanted for the rest of his life upon retirement.

Now, at 74 years old and with a bad back, Carl bags my groceries in pulls my cart back into the store for me. He cannot make it on the $1000 a month that he gets from his retirement pay. That barely covers is medical expenses.

Millions of people report to work every day just like Carl did. They still believe that when they retire from their jobs, they will be amply rewarded for all of their years of dedicated service. Like Carl, they will have to learn how to live with only half of the money that they use to get. They will have to budget every penny of their money to make ends meet just to stay alive through their older ages.

There’s a better way a far better way! You have to break the mold. You have to pull yourself out of the brainwashed pool of failure that we live in. You have to take responsibility for your own financial destiny. You have to make the choice between the false securities that your job provides and the unlimited financial freedom that you are entitled to. You have to become an entrepreneur and start your own business!

The choice of financial freedom enables you to have anything that you want, do anything that you want to do and be everything that you ever imagined that you could be. You don’t simply have to report to your prison-like job every day. It will drag you in and suck the life from you. Your time is precious. It is also limited. Stop wasting your valuable time being herded like a sheep. Start taking action to achieve your personal goals and become what you want to be in this life!

All that is required of you is self belief. Sounds simple doesn’t it? It’s not. If it were easy, then everybody would be financially free. Because they fear failure, the masses sheepishly continue to report and profess their false hopes of an idealistic “retirement”. Their hopes will be smashed. Their dreams will crumble. They will long for time lost when they could have made different choices.

Change your way of thinking! Take the following steps to begin to develop your own success:

1 Set specific goals for yourself.

2 Visualize yourself attaining these goals.

3 Become intentionally obsessed with success.

4 Take action and watch your goals materialize!

Step away from the television. Stop wasting your time sleeping all day on your days off. Start thinking big and stop limiting your development. Stop believing in the lies that being a good servant will grant you freedom in your older age. It won’t! Do something to develop yourself every minute of every day. Consider the alternatives.

Of course, you can’t just quit your job right now and call yourself a businessperson. You need a plan. You need to do research. You need to educate yourself. Everybody has a great business within them waiting to be released. Focus on helping people in any area that you have expertise in. Choose freedom over false security. Develop yourself and prosper!

Demetrios Tzortzis has coached and mentored countless individuals in online marketing and is unlocking the potential for success without the initial “beginners” slump.
Demetrios Tzortzis
720.339.3808
livetoprosper@gmail.com
http://www.LiveToProsper.biz

http://www.YouTube.com/Dprosperityman