The Money Secret Exposed File – The Price Point Sweet Spot
What is the The Money Secret Exposed File?
http://MoneySecretExposed.com shows the different ways an individual can start making money TODAY. There are many things people can do to make money today. However, every thing out there that makes money usually follows some basic principles. That is what The Money Secret Exposed file is going to reveal.
While there are many ways to make a lot of money today, certain principles tend to create much larger chunks of money for your bank account. Those are The Money Secrets we are going to focus on!
How can you find the top money methods? The easiest way of course to see where the big money is… In other words, who is making the most money in whatever industry you are looking at or involved. Watch what the top earners in that field are doing and emulate those actions. Let’s say you are a doctor. Who is making the most money in your field? Well obviously the more specialized you are in medicine the more money you make. A heart surgeon makes quite a bit more than a general practitioner. If you specialize in bones, then the guy or gal that specializes on a specific joint or area will make more the more specific their field.
If you are in business, who makes more the cashier, the manager, or the owner. Well obviously, the one with the most income potential is the owner of the company. J. Paul Getty was one of the richest men alive. He used to state that he would much rather earn income from1% of the efforts of 100 people than from 100% of his own efforts. That is the leverage of numbers that helped him create massive wealth. That is going to be the goal here; to make sure and get that Money Secret Exposed.
Price Point Money Secret Exposed
When selling products there is a sweet spot on pricing. Think of it this way; as price goes up demand goes down. If you have a product that if you sell it for $30 then 100 people will buy it that means you can make $3000 in sales. If your cost to create that product is $10 each that means that your profit is $30 x 100=$3000 minus the cost of $10 x 100=$1000 for a total profit of $2000.
What if you sold less products at a higher cost? There are several benefits to that. Lets say we could only sell 75 pieces if we raised the price to $40. You might think it is the same deal. 75 pieces x $40 = $3000. However, look what you just did, you just lowered your production costs by 25% while keeping the same gross revenue. So now your numbers look like this $40 x 75 = $3000 minus the cost of $10 x 75=$750 for a total profit of $2250 which means you increased your profit by 12 1/2% or $250.
Even that subtle change has many impacts on your business. Here is one change, you are now getting a slightly higher quality of customer. These higher priced customers obviously are more involved in your product and sold on it if they are willing to spend $40 instead of $30.
Another benefit is that you, as a business owner, can get by with less inventory. Maybe less employees, less storage space, and in turn lower rent. That has more impact on your overall business and profitability.
You also could have lower customer service issues because you have fewer customers while making more money.
But let’s throw out one more price point and see if we can find a sweet spot. What if you raised the price to $60 but your sales only dropped to 70 pieces. Some of the benefits as in the last scenario remain; lower inventory, lower customer service costs, higher quality of customers, and lower production costs. But hey, I am a numbers guy, so let’s run the numbers again. $60 x 70 = $4200 minus the cost of $10 x 70=$700 for a total profit of $3500. This means you increased your profit from $2000 to $3500 or a 75% increase in profit. This Money Secret Exposed is the price point “sweet spot”.
This also constitutes a 30% reduction in production costs, and a 30% reduction in customer service calls (and maybe customer service staff). If you are like me and work from the comfort of your home that could also mean a 30% decrease in the amount of work you have to do and a direct impact on your income level.
Assignment: Figure Out How The Price Point Sweet Spot Can Apply To your Business And What Your Price Point Should be.
So that is just a taste of the Money Secret Exposed File. It is my intention to add a series of Money Secrets that will help you make more money, faster, with less work, and with the most benefits to the most people. While I do have a Masters in Business Administration and many of these tips and suggestions apply to big businesses, small businesses, and brick and mortar businesses, most of what I write about will have a strong connection to and influence from the Home Business Industry. After all, I work from the comfort of my home and have considered and most likely applied every Money Secret Exposed to my own business.
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