Join The Inner Circle Mastermind Weekly Call!

The #1 thing that transformed my life was being a part of masterminds… I’ve literally invested hundreds of thousands of dollars in masterminds and it’s what’s allowed me to achieve a level of success I never though possible… Generating millions of dollars.”

Dean Graziosi

If you’re ready to take your life and business to the next level, you must join use for an upcoming Inner Circle Mastermind call!

The Inner Circle Mastermind is a weekly call that has a number of components to it. We have specific topics we train on. As a group we study and discuss books and how the things taught in each book can impact our businesses and lives. As a group we break down challenges or opportunities others are facing and determine the best plan of action to move forward.

You’re The Average Of The Five People You Spend The Most Time With

Jim Rohn

If you’re looking for success you need to surround yourself with like-minded, success-focused people. The Inner Circle Mastermind is a group of individuals READY FOR MASSIVE SHIFTS IN THEIR LIVES! They are READY TO STEP IT UP AND BE CHALLENGED, and they are READY TO HOLD YOU ACCOUNTABLE to do the same!

Just finished our mastermind. I now have actionable plans that will move my business forward. Thank you for creating a group of synergistic, like-minded leaders. The ideas and group brain storming put me light years ahead.

Dr. Mark Leonard – High Performance Coach

Great investment of my personal time. Jeff was able to deliver a thought provoking, systematic approach to recognizing and understanding my WHY and how to improve. Application of this in a mastermind group setting offered greater insights and perspectives to my personal and business challenges. 
Worthwhile at every level!

Sheldon McLachlan – Entrepreneur

Time well spent! If you’re stuck in your life or business, Jeff will teach and guide you through the skills necessary to break through those barriers and carry you to the next level.

Alan Wood – Sales Executive

I knew this mastermind class would be beneficial but the unexpected a-ha moments were life changing. Thank you for your ability to guide us through this process so seamlessly and for helping us see so much potential in our businesses once again!

Becky Leonard – Entrepreneur

One of the hard parts about being an entrepreneur is the psychological weight of being the key decision-maker. Every decision and metric depends on you.

Figuring out how to organize your time, stay accountable, and make everything happen without losing your mind is a real challenge. I don’t say this lightly: Not having people to talk to and bounce ideas around with can be one of the hardest parts of starting your own business.

For that reason, many entrepreneurs I know turn to mastermind accountability groups to help them stay focused and successful.

Sarah Kathleen Pack (Forbes.com)
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Want More Profit In Your Business?

Know Your Math

I was recently working through some marketing strategies with one of my coaching clients and we got onto the topic of pricing. She really wanted to make a push to increase her sales in the short term and wanted to decrease her prices and have a sale as a promotion. 

I told her that I didn’t think that it was a good idea. There are better ways in which you can offer your customers more value with different strategies such as bundling. But first I wanted to walk her through the numbers to show her why I didn’t think a sale was her best option. 

Unfortunately I haven’t always seen it this way and have made similar mistakes with my own companies in the past. But now that I’ve worked through the numbers and see the math, I definitely focus on other marketing strategies.

I’ll spend some time in other articles to talk about different strategies, but for now I’m going to walk through the steps I showed her that explain why I don’t like the idea of using a sale to add value to your customers.

The real key to success in marketing is to offer more value than your competition. Prospects will pay twice the price if they believe they’re receiving four times more value. Unfortunately, most businesses in a vain attempt to increase their value begin to offer discounts, and that often destroys their margins. 

Would you believe me that in some businesses if they discount their price by a mere 10%, they now have to sell 50% more just to break even?

Let’s look at an example:

If you sell a widget for $100, and you have a 30% profit margin, you make $30 for every widget you sell. That means your cost basis for that widget is $70. If you discount that widget by 10% and sell it for $90 instead of $100, your cost basis is still $70. Now you are only making $20 in profit instead of $30.

For this business to make $1,000 in profit selling their widgets at $100 each, they would need to sell 33.3 widgets ($30 X 33.3 widgets = $1,000). But by discounting their price 10%, now they need to sell 50 widgets ($20 X 50 widgets = $1,000). They now have to sell 50% more widgets just to get back to their original profit margin. (33.3 X 1.5 = 50).

But consider this… when was the last time you saw a business offer a measly 10% discount? Most of the time they offer 20% to 40% discounts… and wonder why they are going broke. And to add even more bad news on top of this already bleak scenario, did you know that the latest research shows that discounting doesn’t actually impact a prospect’s buying decision unless that discount is for 40% or more?

So what about increasing prices?

Most small businesses have NEVER raised their prices. That’s because they don’t know the facts when it comes to increasing their pricing. They’re scared to death that ANY price increase, no matter how small, will lead to a mass exodus of all their customers. But is that really true?

Let’s use the same scenario as before. You are selling your widget for $100 and decide to increase that price by 10% to $110. Will that small increase REALLY lead to a loss of customers? Honestly, I believe a few will leave, but they are most likely your biggest price shoppers that show NO loyalty or patronage to your business anyway. They are the ones that beat you down on price every chance they get, and the moment you begin to make a decent profit, they will leave you in a heartbeat for the next business willing to accept a financial beat down. But even though there will be some customer attrition… to what extent? Let’s look at the numbers.

Their business is now making an additional $10 per widget… All of which is pure profit. Right there, that’s a 33% profit increase. For their business to make $1,000 in profit selling the widgets at $100 each, they needed to sell 33.3 widgets. But now, by increasing the price 10%, they only need to sell 25 widgets.

That means just to BREAK EVEN, they would need to LOSE 25% of your customers over a measly 10% price increase… and that simply ISN’T going to happen!

Want to know the closely guarded secret that successful businesses don’t want you to know?

STOP Discounting!!! Instead, innovate your business so you offer more value than your competition and increase your prices.

Of course, if we were working together we would need to perform a thorough price analysis on your business and determine the most lucrative price increase for you, but this is definitely a strategy I strongly recommend to all of my small business clients to help them increase their revenue. There simply is no FASTER or EASIER way to generate additional revenue. 

After working through these numbers my client made the decision to increase her prices rather than have a sale and decrease them. So far, along with some other marketing strategies we applied, it is proving to be the exact thing she needed to do for her business.

Once you know and understand these and the other marketing strategies I teach, it’s just a matter of getting it all implemented in a timely and efficient manner to watch your business explode!

Watch the Video: “Everything You’ve Learned About Generating Leads & Growing Your Business Is Wrong!”

jeff@jeffheggie.com

Book Quote of the Week – 135

“The FASTEST way to getting back on my feet is to find the right customer who will advertise for me through word-of-mouth referrals.”

Julie Stoian