When getting ready to launch a new service with a client, we started to check out some stats. This client has a very high-end service as well as lower-priced products. After running the numbers, we found that concentrating on the high-end service would be extremely cost-effective.
Here’s why.
The vast majority of my clients who bought products, bought small, five dollar to ten dollar items. The rest of the clients purchased higher-priced, more profitable items. Now, with the new service being offered at close to one hundred dollars, which takes only 20 minutes (It is a health assesment)… The profit matrix is very good.
Therefore, my client is quickly going to change focus to providing this service and all support functions.
This reminds me of something, an associate once told me… It is easier to sell a few high priced items, than to sell a bunch of lower-end chaff.
This has proven true to me over and over again. Unless you have deep pockets to get the word out or are savvy enough to use all the resources of the ‘Net to sell a gazillion copies of your product, it is better to look for a higher priced product or service that is WANTED, rather than trying to sell to the masses.
On a personal note: I’m planning a seminar about using the ‘Net and other resources to move your business forward, no matter what happens in the economy…. watch for it.
