Page 196 - The $100 Startup_ Reinvent the Way You Make a Living, Do What You Love
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“ARE YOUR PRICES WHAT THEY SHOULD BE?”
When was the last time you raised your prices? You can have a sale or give out
discount codes from time to time, but like all businesses, you should also plan on
raising your prices on a regular basis as well. Always remember that trying to
price for “everyone” is a business death trap. Since business owners live or die
by the free market system, the way you decide whether your pricing is fair is by
asking another question: Are people buying what you sell? If the answer is yes,
you’re on the right track. If it is no, you have a problem.
“HOW ARE YOU MARKETING TO EXISTING CUSTOMERS?”
One of the best things you can do is reach out to existing customers and find a
way to meet more of their needs. As part of this examination, you should check
your postpurchase process carefully. What happens after someone buys? Do
things get sent to the right place? Does everything arrive in the buyer’s in-box or
physical mailbox as it should? If you sell consulting, do clients know exactly
how to set up a time in your schedule after making a payment? The easier you
can make all of these things, the better.
“ARE YOU TRACKING, MONITORING, OR TESTING ENOUGH?”
The thing about testing is that you just don’t know what’s going to happen until
you do it. That’s why you test! Once I installed an upsell offer in which
customers could get a $50 gift certificate for only $25 after making a purchase. I
thought it was a killer offer, but my customers didn’t think so; it was accepted
only one out of twenty times (5 percent). A good upsell can convert much better
than that, so out went the gift certificate offer.
“WHERE ARE THE BIG MISSING OPPORTUNITIES?”
Having a big opportunity doesn’t mean you should pursue it. I pass up a lot of
things because they aren’t a good fit for my overall strategy. However, it’s good
to know what you’re missing even if you’re missing it deliberately. Keep your
“possibilities list” updated so you can follow up when you have more time or if
you need more money.
In Murfreesboro, Tennessee, Erica Cosminsky was a human resources
professional for a pharmacy chain and a parent to two-year-old Riley. Working
long hours during the day, she traded off child care with Riley’s father, with
Erica taking the weekend shift while he took the weekdays. When she was
