
The pricing model is something that has always attracted my attention for many years ever since I know that I wanted to become my own boss.
Many people often question how and why are there so many expensive products, brands, businesses all over the world. Finally I have found the answer to that question. Although it took me minimally not less than five years.
Since the day I set my sights on becoming my own boss, I was learning anything and everything that i have access to, and luckily, my efforts paid off, not in monetary terms at least at the moment.
As I did my own project for testing and market study behavior over the past few years, sharing free knowledge of business secrets, insights and strategies, there seems to be of no value. Even when I help people to save money, by answering questions that sales agents will not want their prospects to know, I solved their queries at my own expense (in a forum filled with nothing but irresponsible agents), I was broke, only a word of thanks, and that’s only something that happens once in a blue moon.
Even in my own blog such as this one, while I expect nothing out of this, as i just took it like a test project, it did help me benefit one way or another in financial gain, but the contract has yet to be finalized, I’m still working on it. It isn’t the contents nor quality that I gain, but the popularity and the ranking in search engines that has returned me the favor in future potential returns that I will be capitalizing on.
So much for Free Stuffs. They don’t not work, nor do they benefit you financially, unless you have some other agenda, like why i blog, I got that results i wanted, and I’m happy with it.
Back to the subject proper, having talked about free stuff and the zero returns on investment, anybody who think they want to try out giving free stuffs, information should never ever think about it, if you do not have a way to monetize on your free stuffs, information or product that you are giving away for free. Think of a way to generate income/result from a thing before you offer free stuffs.
Now for the middle to expensive high end stuffs. With my few years of employment since fifteen until before i enlisted in national service, having served both low to middle high end clients, seen and somehow understand the reason and benefits of imposing high charges.
Businesses dealing with high value clients actually in fact have a easier time doing business, even as employees dealing with clients, they behave, react, and act way much better than the clients who I served at low end businesses, pay so little, yet expect everything more this, more that.
Than attempting my own projects, following closely and observing my mentor’s business growth and strategies, i managed to get it craved in my head, that it is better to serve high end clients than low end ones. Should you really have to serve the low end clients, think how you can serve more more clients while doing less work, and when you find that answer, you might be given promotion, as you help the business grow.
There are multiple profits and benefits as compared to offering to low end clients.
1. VIP Clients are appreciated, they make your work easier and happier.
2. VIP Clients knows the value of service and work stuffs and business owners put in thus charging higher price, so they do not complain even once as they value quality service in return for a pleasant and unforgettable experience.
3. By having higher fees, cheap-skates will automatically be barred due to financial reasons, thus greatly reducing the possibility of having any complaints who do not even know what is expected of them, the service, product quality they should be getting, and in most case, they always ask for more than what they are paying, so this cuts down lots of unnecessary trouble.
4. With high fees, personalizing, customization and providing first hand service experience to VIP clients gives the clients more time, and convenience to the business as well, as the high fees compensates for the lower numbers of clients at least for a few times so it justifies the financial accounts positively, and it helps grow the business too organically.
5. Both VIP clients and service stuffs are always appreciated by the business owners and operators thus given good treatment, and they might be their future business partners, investors thus there is a possibility of unexpected profits from joint ventures via the connections of the clients as well as the employees whom have delivered quality services, may end up being head-hunted by a VIP client to become their in-house trainer; which I did heard of it happening at least during my stay working in a five star hotel when I was still in the teenager age before enlistment.
6. Time & Profit matters: More time is spend on the event, clients and delighting the clients, so providing quality, which is the core of every single business, yet not many businesses (excluding the MNCs) actually follows this simple rule. Other small middle businesses just focus on sales, but not customer service, thus they never grow and always have the typical glass ceiling of profits that they cannot overcome no matter what methods they try.
7. Scarcity is something very important to the business, especially if you are one of the few people in the world who knows and are providing the services to businesses to help them grow their business, that way you can charge well above market rates, as there is not guide yet, as long as you can justify your price with savings and sales for the business. That’s the very core behind any pricing model.
A Happy Employee = A Happy Customer = A Returning Customer = A Happy Profitable Business
That’s what majority of the sales industry those still struggling failed to realized, yet they keep expanding compromising on the service delivery. If you want to earn more, and grow your business fast, make sure you pay your employees above market rates and treat them well, in order to keep them loyal to your business, very good example will be the bankers. Paid awfully huge amounts for quality service, unlike in the Food & Beverage industry, overworked, underpaid, and worse, unappreciated by the superiors. Even property, insurance industry cannot pay as well as banks do.
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