How to Price Your Products to Make a Bigger Profit

How to Price Your Products to
Make a Bigger Profit
Chuck Holmes
Network Marketing Professional

Individual results will vary. (c) 2018
www.OnlineMLMCommunity.com
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How to Price Your Products to Make a Bigger Profit
Today I would like to discuss how to price your products
the right way, so you can maximize your profitability. In
business, there are really two pricing strategies.

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The Two Pricing Strategies
• The first strategy is to price your items as cheap as
possible (like Wal-Mart) and make a profit by
attracting the masses and selling TONS of
merchandise (or sell inexpensive items). This is the
approach used by most businesses. These
entrepreneurs work on low profit margins or sell low
quality items and make money with volume.

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The Two Pricing Strategies
• The second strategy is to price your products at a
higher price point and sell fewer items, but still make
a nice profit. Or, you could sell a “higher quality” or
luxury item at a larger price and larger profit. I call this
big ticket items. This is the strategy I recommend for
most entrepreneurs!

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What I Like to Do
Personally, I would rather sell ten one thousand dollar
items than one thousand ten dollar items. And I’d much
rather sell one ten thousand dollar item than either of
the two previous examples. When you sell more
expensive and better quality items you attract better
clientele, make more profit, and typically have fewer
customer issues.

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What I Like to Do
Whenever possible, you need to sell products and
services that provide YOUR BUSINESS with a nice profit.
This allows you to work smart. Always look for ways
you can raise your prices without losing your current
customers. You can do this by offering good service,
convenience shopping, a better guarantee, etc.

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What I Like to Do
If I am selling a service, I look at what my competition is
doing and try to price myself a little bit higher. I factor
in what my time is worth and also consider how many
“un-billable” hours I use to find and acquire new
clients.

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What I Like to Do
I don’t think many businesses can compete with Wal-
Mart® (or other similar discount stores) when it comes
to discount prices. In every industry there is a discount
store or brand that sells similar items at bargain
basement prices. These are typically big chains that are
happy working on a 1-3% profit margin.

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What I Like to Do
The odds of you competing with these big corporations
and doing it as well as they do are quite slim. More
importantly, I’m not sure why you want to follow that
approach anyway.

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What I Like to Do
I think it’s better to differentiate yourself from these
types of businesses. You have to remember that if
“cheapest” were the only criteria used by consumers,
no one would ever buy a Mercedes®, Porsche® or any
other luxury car.

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What I Like to Do
The same holds true in every industry. Sure, many
consumers like the “cheapest” thing they can get, but
there are plenty of “niche” markets that will pay more
for a quality item or better service. These are the
people you should cater to. In the end, you will be glad
that you did.

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Final Thoughts
In summary, when you are pricing your products you
have two strategies. You can be the cheapest guy in
town, work on small profit margins and hope to attract
the masses. Or, you can find ways to differentiate
yourself from everyone else by providing better quality
products, better customer service or more
convenience.

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Final Thoughts
In my opinion, this is the best way to go. I think it’s
much better to make more profit per transaction and
do fewer transactions than try to do lots of transactions
with small profit margins.

Suggested Reading
• Marketing Your Business on a Budget: 14 Things You
Can Do
• Why You Want and Need a Big MLM Retail Business
• Selling by Educating: The Best Selling Strategy Ever
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About Me
Chuck Holmes is a top producer in his network
marketing company, which specializes in natural and
organic products.
His company offers a free online marketing system
with capture pages and autoresponders.
Chuck gives his team members 200 free leads each
month and provides tons of training. The company
even has a postcard marketing system. Let’s connect.
(352) 503-4816 EST
chuck@onlinemlmcommunity.com
https://www.onlinemlmcommunity.com
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How to Price Your Products to Make a Bigger Profit

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