In my community of business owners, there's a common trend that's become clear. They're all going through the motions of business and selling their products or services.
But they have one thought that plays on their mind.
‘How do I make more money from my business?'.
I bet you're probably nodding your head too right now. I mean, who doesn't want to make more money from their business? It's a legit concern and a question I'm often asked in my business coaching sessions.
So, how do you create more profitable products or services for your business?
If you haven't listened to podcast episode 165, I suggest you do it soon! You'll discover how to survey your audience to create products or services they 100% need from you.
When you understand what your client's desires are (because you've asked them directly), you'll be able to align your products or services.
And you'll find that once you're creating products or tailoring services that your customers truly need, they'll buy more from you or use your services more often. So whether you're a product or service-based business, you'll find they become loyal customers as they'll feel like you genuinely know (and help) them.
Before we dive in, I want you to take a moment to ask you – ‘What are you really selling?'.
The heart of sales is psychology. And no, I'm not going to get into sales pitches here, but I want you to think about your customers once more.
When you know the emotional reasons people buy from you, you'll be able to sell more by appealing to their buying logic.
‘Don't find customers for your products; find products for your customers'. – Seth Godin.
From my years in business, I've found a method that works well for me, helps increase my profits and keeps customers coming back for more.
I call it the graduation system. And it works! Here are some examples from my business:
It comes down to knowing your audience. I have created products that speak to my audience to solve their problems at different stages of their business.
Take a look at your business to see if you can create a graduation system. Can you take your clients from level one to level two to level three? If you can, you don't have to attract as many clients as you've already secured them. In addition, you'll save money on acquiring new clients.
There are a couple of proven methods to increase your profits if you're a product-based business.
Again, you need to know what your customer wants. Why have they come into (or landed on) your shop? What's their desire? For example, a client of mine runs a homewares shop but wanted to make more sales. So we explored why her customers came in – to create a ‘wow' factor in their home – to stand out – to be better than the Jones! From there, she could package together different products to set up an entire room rather than a one-off idea or product piece.
Many businesses do exceptionally well with items like loyalty cards. It ensures repeat business in return for a discount (or freebie) after they've purchased multiple items from you. It's a proven method to create an increase in profits from return customers.
Super obvious here, but the way you price your products or services will ultimately affect your business profits. So here are my top 2 pricing methods.
You take into account your materials, labour, overhead and total costs and then add your profit margin on top of that. People will often look at what others are charging and create similar price points (market pricing). The issue here is you're potentially undervaluing yourself and throwing away a chance to increase your profits.
Have you got a seasonal product where the demand for it is off the charts at a particular time of year? For example, a top-rated toy that every kid wants for Christmas? This is where you can up your prices as the demand is higher.
People trust brands – well-known brands – there's no secret in that. Other's choose to buy from certain brands for the esteem of owning an item from that brand.
For example, I could buy a drawstring bag from Country Road for $199. It's of excellent quality, and it's beautiful. I could also buy a similar bag from Chanel for $3,200! They're both drawstring bags. They're both creditable stores.
But do you know what the difference is?
Brand positioning. Chanel has branded itself as the upper market to confidently charge $3000 more for the same bag.
This is why, if you want to grow your business and increase your products, you need a clear brand strategy. Building your brand and taking it to the next level is a sure-fire way you'll be able to charge more.
When you create a highly trusted and highly valued brand, you'll charge more as customers will actively seek you out and happily pay you. Your brand will become magnetic and attract customers with less input from you.
Once I built my brand, I've found clients come to me and say, ‘Suz, help me with everything!'. So, I created Brand VIP (another example of the graduation system in use).
As a branding coach, I encourage you to constantly look at your brand and how you position yourself in your industry.
If you don't want to be burnt out in your business and if you're going to work with amazing clients who value and love what you do (and who are willing to pay you for it), then creating the right system, strategies and structure to be able to scale your business is where it's at.
If you want to join a supportive community of like-minded business chicks, give and get advice, and help your business grow, you're more than welcome to join the Brand Builder's Academy. You can find out more here: https://suzchadwick.com/BBA.
I'd love to help you understand how to price and package your products and services for profitability and freedom. Our live coaching round starts soon, so jump on board today.
In this video masterclass, I’ll share the three key areas you need to focus on to scale your business and build a bold brand so that you attract the client that want what you have!
Access it straight away and start watching and learning today!