AVOID THIS TRAP! Why You Should RAISE Your Prices, Not Lower Them
“I believe if you want to increase your sales, you should increase your price.” On this episode of The Small Business Show, host Swire Ho and I discuss the paradox of the “price trap.” So many small business owners think that the best way to compete is to lower prices, figuring they can raise their prices on referral business. But there’s a big problem with that strategy, as I reveal in the interview.
The counterintuitive, better approach is to be the premium solution in your niche - to describe your client’s problem even better than they can, to the point where they assume you have the solution. At that point, price becomes almost immaterial.
We also talk about:
- What McDonald’s and Ruth’s Chris have in common … at least, in terms of marketing.
- The types of businesses that actually don’t need to focus on marketing.
- Why the marketplace could produce a free car, and there would still be some people who won’t take it.
- The fastest way to failure in any business.
- Why we should be optimistic for 2021.
About the Show: Swire Ho is the host of the The Small Business Show.