Dear
Friends,
After the great results from
'Pillars of Business
Success' book, we are now
about to release 'Marketing
Success' book.
Working with over 110
businesses, I'm amazed at
how many of them don't
review their prices on a
regular basis. As this
article addresses it could
be the difference to being
successful or not in
business at all.
Regards
Tony Gattari
|
Available October
07
Marketing Success
Read an extract from
the Book
The Silent Death
“How long has it been
since you last increased your prices?” I asked one of my clients.
“Ten years ago” she
replies.
“TEN YEARS!” I shout
back. “You mean to say that you have not increased the prices in your
business for ten years! No wonder you are losing money. Guess what you
should do next.”
“Increase my prices”
the client answers meekly.
Stupidity No 1:
Continuously
discounting
Stupidity No 2:
Not
reviewing your prices on a regular basis
There is a disease that
is killing many businesses. This is not an unknown disease, as there are
many reports in the daily newspapers and only the nightly news programs.
This disease is inflation, and if you do not review your prices on a
regular basis the increase in the cost of the goods that you sell and
the expenses used to run the business will increase gradually increase
and without you knowing it your will start to lose money on each
transaction that you make.
Example 1
Below is an example of
selling a $500 item, without reviewing the price on a regular basis how
it can hurt your profits. This calculation is based if inflation
increases by an average of 3% per year, which is a general reflection of
inflation rate increases in the Australian economy over the last decade
or so. The costs in this table include cost of goods sold and operating
expenses.
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Revenue |
$500 |
$500 |
$500 |
$500
|
Costs |
$400 |
$412
|
$424 |
$437
|
Profit |
$100 |
$88 |
$76
|
$63 |
In 4 years the profit
on this item sold dropped by 37%. When businesses cry about sliding
profits, a majority of times it is because they have not sat down and
reviewed their prices. The next two sections are going to explain which
items you should increase and how to determine how much you will need to
increase your prices by and reduce your costs, so that you remain a
viable business in years to come.
|
Secrets of Top Sales
Professionals Exposed!
Book $32.95
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“This is a book
takes you up-close and personal with
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have added billions of dollars to
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same knowledge that others pay
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|