How To Double Your Prices Using The 20/20/60 Pricing Rule
In this article, you’ll find out how to exactly price you product, and services, so you get the most possible profit in your business, and keep your customers happy at the same time.
I was speaking to my friend William, in the daily business hustle, and he gave me this awesome strategy to price your products, and services. He said: “during your sales calls, you want twenty percent you talk to, to say this is cheap, you want twenty percent to say this is too expensive, and you want sixty percent to say this is perfect, and then quietly pay.”
Most of the people will quietly pay you without saying anything, twenty percent will think it’s cheap, and that’s fine, and the twenty percent who thinks it’s too expensive, you don’t even want to do business with anyway. You can offer them a discount, if you really have to, but I tend to never do this.
You don’t want to under-price yourself. Your time, your service, your product is worth money, it’s valuable. This is one of the main newbie mistakes I’ve seen: people who start out in business, they tend to under-price their products, because they’ve had one unhappy customer, or they had a refund. They make up these excuses as to why they’ll under-price their product or service.
It’s really simple, you just want sixty percent to pay you silently, twenty percent to say it’s too expensive, and twenty percent say it’s really cheap. That’s the golden ratio for your business. So if you’re offering a webserver for two thousand dollars, and everyone’s just throwing money at you: “take my money, take my money it’s fine.” If they’re all doing this, then it means you’re under-pricing yourself.
If everyone is saying this is too expensive, then you must be in a country where websites go for almost no money at all. You may want to switch to a niche, where people can afford expensive websites, or you may want to decrease your prices, as that’s also a possibility.
That’s the pricing strategy I wanted to share with you today, anyone can implement this, and you can play around with it. Don’t make decisions if you’ve only made ten calls, or talked to ten customers. This is only statistically valid if you talk to one hundred people, who are potentially interested in buying from you.
If you get that data, you’ll be able to price the product, or service optimally, and congratulations, you’ve just started making more money in your business (it’s more optimized).
If you have any questions, comment down below.