In this final part of our series on how to increase profits. We’re going to be touch on touching on one of the, my favorite, favorite topics, which is a pricing. I’m pricing. Right? And so we remember we started off by looking at how do we increase profits? We examine that profits was a result and couldn’t be changed on its own.
And I have to break it up into its components parts. Remember we talked about identifying the different elements of expenses? We looked at. How some expenses are more important than others. We also looked at how some expenses are really critical to the service you offer your clients, the positioning you have with your plots.
We talked about Apple, we talked about looking at the quality of expenses and whether they’re an investment and where they can, they can be part of your continued growth and success. We looked at sales. Next we look at, so we looked at yet sales and we looked at the component parts of sales. We said, you know, we’ve got to get more leads.
We got to, we got to convert more. We got to get the right type of leads. We’ll lose less clients. I mean, you sort of touched on why we need some profits to give clients great service. Or those are critical to, to our success and so we talked about, you know, how part of our offering most to be able to add more value, look at the numbers story of each business and begin to take that wool ball apart and find the nuts and untangle them to release more, more profits into the business.
And of course, you remember I offered you a strategy session, or you can of course download some of my books or other freebies. I’ve got an author, I wrote a book that reached Amazon bestseller for a while called the profit propeller. And the strategy session is goal of the property, propeller strategy session, and a unit, all of that for either free or very, very low cost.
But in the meantime, the, the strategy session is free. But what here I want to talk about is pricing at a premium. Now, this is a topic very close to my heart because I believe it is one of the reasons businesses can be so successful. Now, if you take, I want to, I want to give you an example. A couple of them, your well, many people have resistance to pricing high end and go, well, people won’t buy my product if I price high.
And I, I like giving a couple of examples because it is, it is important that we understand. That. Those are myths. Those are little things that I’ve sent to, to defer us from our true goals. Remember I said that most businesses aren’t trained for business? We believe that business is what? Easy. You open a shop, you open a service and people buy it and you make money and it’s so easy.
But unfortunately it isn’t always that case that that is not always the case. So what I want to talk a little bit now about is the pricing of the premium. Give you some examples. So the first example I want to give you is, of course, Apple, right? Apple prices are premium. If you look at Apple products, it’s, it’s a laptop.
I’m on a laptop right now and it’s basically similar, if not the same as other laptops that are not up. Okay, however, this position did differently, and if people asked me which laptop I would recommend, I would always say Apple. The reason is when I used to buy windows machines, and that may have changed by now, I don’t doubt it, but I bought this particular machine five years ago, nearly now.
Right. And in the past I would have to change my windows laptop virtually every year cause we just slowed down. There just seems to be no way of making it faster. Whereas this machine stayed lightning false. I filled it up. It doesn’t empty it out into backup devices cause I do so many videos. But, you know, for five years it’s still as fast today as it was on day one.
I love it. And so why wouldn’t I recommend it? It’s probably saving. It costs me money at the time. In fact, my. My elbow hall bought me this machine as a business gift because you, she said, look, you know, you need this stuff. This is good stuff. And now I would never buy anything else. But that’s Apple. I mean, and when it comes in, it’s package we talked about is packaging and everything else, right?
The service is incredible. I’ve had problems and then we’ve just dealt with actually beautifully. A really great experience because they could afford it, right? They could afford it. I’ve done a blog, excuse me, I’ve done a blog on how they can afford to give great service because of their pricing. Let’s look at in, in the motor cars, if you’re into motor cars.
You look at a a BMW, right? The big seven series or a rolls Royce. Now, my understanding is, and I’m not a big carb off, but from a watching other videos, I understand that the component parts of a seven series BMW, top of the range is the same as the rolls Royce. It’s owned by the same company. The rolls Royce sells for a multiple price than the BMW does.
Okay. It’s positioning isn’t, it? Is how it’s positioned. The amount of leather is very similar to the amount of wood is very similar. The engine is exactly the same. The chassis is exactly the same. The thing that things sits on and, you know, so there’s so many similarities, but the positioning is very different than the prices.
Okay. People will buy it, right? People do buy Rolls-Royces and they do buy top of the range. BMW’s. I’m not a big coppice and w, you know, as long as my car is reliable and safe and gets me from a to B, without in comfort, and I am absolutely fine with it. I don’t care if it’s five years old, 10 years old, as long as it works, it’s fine.
When it stops working becomes unreliable costume time. I’ve got to get rid of it and get no. So, so that’s for me on call. So let’s look at something a little bit more down to it and go, well, I’m not BMW Apple, fine. Let’s look at something, right? The other end of the scale. And let’s look at water, right?
I go to my tap and I did this morning and I got a glass and I opened the tap and I poured myself a absolutely freezing cold glass of water. Absolutely delicious. Loved it, and acquainted my thirst. It was brilliant. But do you know if I go to a hotel in central London, I go to a nice hotel in central London and I buy a bottle of water from the, from the ball.
Either at the bar downstairs or in the room in the, in the next case, we ball in the room. I could pay three pounds. Five pounds is full of $5 for a bottle of water. Right? It’s the same basic quenches your thirst. But it’s, you know, free yearly. It cost me very smooth part of a penny or something compared to buying it in a bottle.
And so if you look at salad, you feel like it, you know, now prepared salads. You could buy a lettuce for one price. Would you buy the chop letters packaged up and washed and ready to sprinkle all choppy letters? Do hard? You could buy that for a three times the cost. Right? Because those people will pay for different things.
People value things differently. That’s one of the things I want you to get out of this today, and your service, your pricing has the opportunity to, to help people value your service differently, see your service differently. When I talk to clients, I don’t just talk to them about, yes, I’ll get your accounts done for this fee.
That is like every other accountant. I look deeply at what they do, what they want, how they want to work, what they want to do, because I want them to get great value. From what I do, I want to offer them insights. I want to be able to go, yes, I think there’s opportunity we can help you with on this.
Because that in itself sets us apart. And when I had a chat with a potential clients on Thursday, and it was, yeah, Thursday. There was a recommendation from one of my lovely clients and the old lovely, actually, it’s the nature of peaking of the clients you want. Right? And what was one of the things we do?
We find some study sessions, but one of the things we do is we look at how the business could perform better and we’d get into it. And, and the business owner loves it because. You know, it’s, it’s talking about his love and joy, his business. Why? What could be closer and more important to a business owner than their business?
Besides, of course, their family and kids. Right? And what we came to, or when it came to it, he said, I’ve just seen it. I knew it just seemed an accountant because his assistant told me he’s just come off a call from an account of the record you back. And I thought, Oh, right. He’s already seen someone, which is fine.
I really don’t consider other people competition. And we just offer different things in different value. And so I had a chat with him and then go look, you know, you’ve had a chat with a couple of other accountants. Tell me what you think between what you’ve heard between us. He goes, it’s choking cheese, right?
I, you guys, the stuff you’ve come out with and the stuff you’ve challenged in you within the stuff you’ve talked to me about, he never even touched on. He never, you just talked about the books he just talked about. Yeah, I won this and I’ll give you this tax bill. And then that was it. We didn’t discuss my motivations.
He didn’t discuss, and my principals do not discuss my challenges. It didn’t discuss my struggles. It didn’t discuss my cashflow. It didn’t discuss, my investments, none of that. Right. And that he was then ready to accept that I wasn’t going to be the same price. As the, the other accounts that he had just seen a few minutes ago.
So pricing is important. You’ve got to position it, right? You’ve got to create the value. People are just going to pay a high price because you know, you’ve got a name for John, so they’ve never heard of it. You’re not Apple. You haven’t got the big deep pockets to market in the way Apple does. Okay? You haven’t got Rolls-Royces money.
You haven’t got BMWs money. So we’ve got to work clever and not just Chuck money at a problem. And so what I’d like you to become aware of today is really how do you stop positioning it so that you offer greater value? That’s what one of the things we do with our clients and the profit propeller program, right?
How do we position your business to provide greater value so that you can appeal to people who want more value? Right? There are some people who does don’t want move value. They’re not your ideal client, I suspect, unless you are one of the low cost to players, but please think about that. It is so important that you begin to position yourself differently to charge more.
There are a whole lot of things in between, right? We’ve talked about controlling your expenses, and we’ve talked about, you know, pricing is one of the cool one because you can change your price by 10%. And you could increase your profits by 25% and maybe if you knew that you’d have to lose 20% of clients along the way in which you probably wouldn’t because you offer good service.
And if you don’t, you work less hard for the same amount of money. Now the challenges are because you’ve now got a bit more money. You can invest in that, a quality service, but a quality positioning. You could market better, you can spend more time with them, you get more referrals. It is a virtuous cycle.
So let me leave you with that beautiful virtuous thoughts of having a virtual virtual cycle of your business keeps growing. You create the growth in your business, your growth in your profits, your growth in your personal income, growth in your quality of lifestyle, and your growth in the impact you have on your community, on your family, on your team, on your team’s family.
And of course. In impacts and other parts. We have this thing where we support education in all different parts of the world. To me, education is so important to you and maybe something else, but for me, I support education in, in places where they can’t really afford education. There’s not a lot of money to, for them to afford reasonable education, especially in how digital education, it’s absolutely beautiful.
For example, this, you’re getting this from free. Digital education. How cool is that? So why not give it to a wider audience? Right? So that’s part of what I want to do. If you’d like to book a free 45 minute strategy session, please, DPSS profit propeller strategy session, send it to me and I’ll organize a 45 minutes completely free strategy session.
And I’m looking to do 15 before mother’s day. Maybe. I don’t know when you’re going to see this recording. You may be off to mother’s day 2020, but if it’s often mother’s day, then I’ll have a couple of weeks. I do a just book you was in, if there was availability of the next available one and we will get together and help you map out your business success story.
This is Gordon D’Silva taking it some time out now to go and get a cup of coffee and gofor a beautiful walk in the park. Looking forward to that. I wish you well. Take care of yourself. All the very best. This is golden. Signing out. Bye bye.
