Raise your rates without wrecking your business
Raising your rates would appear to be an easy answer to improving your revenue. But how do you do it without losing every client you have?
Level : Beginner
Monday, 31 August 2020
WA: 9:00 AM to 10:00 AM (AWST)
NT: 10:30 AM to 11:30 AM (ACST)
QLD: 11:00 AM to 12:00 PM (AEST)
Some products are high-margin. They bring you a solid return on your investment to deliver them. Some have a margin that’s a little less grand. Then other services or products you provide may actually be running at a loss.
While these “loss leaders” may be something that you use to bring in more high-value business, they may actually be working against your business, by eroding profits and cheapening the cost of entry for customers to do business with you. The trouble with having a low cost of entry, is that you’ll be competing with many others who do what you do, and can sustain lower prices longer than you can.
While it can be valuable to your business to provide some kind of free or low-cost entry point, it is of no use if it’s costing you way more than the potential lifetime value of a customer.
This webinar will take a look at three businesses that started with low-cost entry points, what the impact was on their business, and how they transitioned to a higher priced model that was more sustainable over the long term.
In this session you will:
- See how low pricing models work for products and services
- Learn the true impact of low pricing models on a profitability
- Learn to calculate pricing that more sustainable for your business
- Learn how to transition from your current rates to higher ones
- Learn how to migrate customers to higher rates, or – to other providers
This workshop is brought to you by Business Station and AusIndustry under the ASBAS Digital Solutions Program
ABOUT THE PRESENTER
Dante St James is a sought-after digital trainer and advisor due to his work with Facebook Australia & New Zealand, Google’s Digital Springboard program and various Australian Government programs including ASBAS Digital Solutions, BeConnected and Stay Smart Online.
Being the owner of his own low-cost digital agency, Dante had to transition from being “the cheapest in town” to being a premium agency within 6 months. This involved new branding, marketing and most importantly, new pricing. The result has been a more sustainable agency that has actually grown in both staff and revenue, just 9 months after beginning the transformation. He has now used this same process to transform an underperforming mobile app for consumers into a profitable app for businesses, and is currently working on projects that will see the same method applied to several more businesses before the end of 2020.
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