James Schramko here. And recently a client asked me how they can jump up their price from $38 a month to $147 a month in a business market space. And it’s an interesting scenario. So, what you’ll hear coming up next is my answer to that question, which I gave in a recent SuperFastBusiness monthly Q&A call, which we hold for the benefit of members.
They can actually dial in and ask me whatever they want. It’s part of the features of SuperFastBusiness membership. So here’s my answer to how to make a significant increase in price and some of the things you might want to be aware of if you plan to do that. So a couple of key points here.
One, it’s a radical price jump from that price to another. I would say it’s almost, I mean, it is a different product, right? Two completely different products, at that price point. You will attract different customers. And your offer will need to be differentiated, probably. So if you had your price, like, way wrong in the beginning, and you were just adjusting it, that would be one reason to move to the right price. You might put the price up and find no one buys, and that can happen. I’ve actually moved my price once just one notch too far and stalled pricing. And then I found ways to recover from that.
So a couple of things to consider there. Is it a one-way move, or is it reversible? So if you put the price up, would you lose too much face if you had to change the price, if you stalled it and no one would buy? If you put the price up, I would definitely do it in phases and take advantage of the loyalty lock-in on the way there to the price. So I would say if you’re going to move from the price you mentioned to the price you’re intending, which is a significant jump over $100, you’re going to have a different client base and more or less, it’s a different product.
So one question would be, should you put a product on top of the product you have and start fresh, and not have all these legacy clients on the price? That’s one thing you could do, or you just migrate it over time and see if you can keep refining the offer and make it appealing to your audience without losing them or stalling sales. And if you do bite off more than you can chew, you might have to revert back to the last offer that converted.
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