{Light bulb moment} Life is going to change. You are going to open a business. Or you did open a business, one, two, ten years ago. And, that light bulb moment, it’s starting to dim.
Why do we open companies to start with? Probably because we think they are going to support the lifestyle we want. This was me. I was a mom, a military wife, someone who moved {much more than I liked}, and I wanted to enjoy my life and follow my “Why”, which is without a doubt changing people’s lives.
Being an entrepreneur made sense—I could work from anywhere, travel to my studios, and build a great team. And, I was lucky to have made enough mistakes early on to learn what I had to have to create a successful business. I’ve started businesses from scratch and taking failing businesses to some of the best around. In every circumstance I apply the same systems.
In reality {or if you looked at my studio opening checklist} there are literally hundreds of pieces to the profitability puzzle that have to be fitted together just right for a studio to burst to success. *Since I’m not writing a book {yet} this means I can’t tell you everything, but I’m going to hit some biggies.
In the end there are four things that you must have to start {or re-start successfully}.
1. Pricing
2. Persuasion
3. Profit
When I started to write this and got to one page on pricing, I realized it was time to break this down just a bit. So stay tuned for Persuasion and Profits.
Pricing:
And, by pricing I mean the right pricing. If you’ve ever been on a webinar when I’ve chatted about this, you know I am the biggest nerd when it comes to pricing and the behavioral economics behind them.
Why? Well, your client is irrational when it comes to price. We’ve been told follow your market, price yourself in line with your competitors, maybe just a little less. Raise your hand if this is exactly how you set your prices {Me…seven years ago}.
Turns out that strategy doesn’t matter to your client. {Let me stress here, that pricing strategy is only as good as the sales system that can educate your client to see value}. Your clients needs comparison. They need to see value, not just in what you’ve taught them, but in what you’re asking them to buy.
First, of all your pricing needs to be based on YOUR value. If you are the best {let’s define this—best results, best customer service, best personality} you can charge far beyond what anyone around you can. You’re worth it.
Second, your individual session price should be extremely expensive. Cost prohibitive. Make your clients cringe outrageous. Why? Because, everything else looks like a value in comparison.
Third, your pricing needs to factor in your profit margins. When’s the last time you analyzed the profit margins on what you sell? I mean deep down dig in. You need to be highly profitable and if the profit margins aren’t there, either your price or your product is incorrect.
Finally, {and this is crucial} you actually have to believe that you are worth it. Have you ever had someone offer you something they clearly don’t believe in. I was in Whole Food’s recently and watched this phenomenon. A young woman handing out samples, just wasn’t too sure. The product may have been great…maybe she just didn’t like coffee, or vanilla. But, even her faint discomfort or uncertainty on the product shone through like a beacon in the night. Your customers see you. Let them believe as much as you do!
Stay tuned…persuasion coming next!
Do you want to stop sabotaging your business and starting adding to your bottom line? Download the 4 Profit Killing Mistakes cheat sheet now!
