Jay Abraham Getting Everything Out

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wait for them to call him, but he just went out systematically, quarterly or semi-annually, and trimmed those trees for
them and charged it to their credit card.
He thought it was a great idea. And in a matter of three months, he converted 70 percent of his active clients to this
ongoing service.
He took people who purchased haphazardly and erratically and got them to start purchasing four times a year forever
from him. The impact to his business was a doubling of sales. And he quadrupled his profit because he was able to
completely stop running ads in the local newspapers and he was able to cut down on his sales force. Between the
clients he locked in ongoing forever and the referrals these satisfied clients gave him, he had all the business he could
handle.
A good example in the consumer products field is a company called Saint Ives Labs. They make shampoos, hair-care
products, etc. But they have solely based their business on a concept that exclusively packages their products together.
They offer large-sized units of shampoo with complementary conditioner for a single price that is more advantageous
than buying separately.
The key to packaging products together, wherever possible, is to offer them to the client in a more price-advantageous
manner.
I worked with a chain of convenience groceries and gas stations. They had gasoline islands out front and convenience
grocery stores inside where you went to pay.
I asked them to try an experiment for just thirty days.
They raised the prices of half the items in their convenience store-the chewing gum, the soft drinks-by an average of 20
percent an item.
They were appalled when I asked them to do that. They said, "No one will buy that," and I said, "I disagree. As a
convenience it has a premium value to that client. It's not going to be judged as a commodity."
They grudgingly agreed, and that grudging agreement made them $900,000 extra profit in the next twelve months
because, as I suspected, sales did not drop. Clients did not balk; they cheerfully paid 20 percent more for the gum and
they cheerfully paid 20 more for the beverages and they cheerfully paid 20 percent more for the doughnuts and the
coffee. Because it was a convenience. It wasn't whether it was fifty cents or fifty-nine cents. It was the fact that they
were in a rush, they were going to work or from work or to a meeting, and they wanted a cold drink or a hot drink or a
sandwich.
I strongly urge you to look at your business or practice and ask yourself-could I take any or all of the products or
services I sell and reposition them to be more upmarket?
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I had an investment client one time with a boutique type of division that sold to very high-end clients to whom they
gave an enormous amount of service, attention, and research free. They also had a discount division that sold to people
who just wanted great pricing. And they had the middle-of-the-road division that sold to the masses.
All three were very profitable. All three sold very differently. All three sold to different segments of the market, but all
three sold brokerage services.
Ask yourself-is there a level of my market more upscale than the one I'm currently reaching that I should be catering
to? And if the answer is yes-which it could be in many cases-all you have to do is try a safe little test and see what
happens. Downside is nothing. Upside is tremendous.
In the majority of the cases when you raise your market positioning and become more upscale, your existing clients
look at you with more respect. Thus, they have more loyalty and that turns into more referrals. Suddenly large
segments of the marketplace who never noticed you before start noticing you and buying from you.
In the last several years the entire retailing marketplace has been turned topsy-turvy by the advent of warehouse
pricing. Price Club, Costco, and SAM'S Club have come into being. They offer you massive jars of peanut butter and
they offer you huge drums of laundry detergent for prices dramatically lower per ounce or per pound than you can buy
at the conventional grocery store.
And guess what? People are flocking to buy this way.
The industrial chemical business flourishes because they sell to industry in fifty-five-gallon drums or pallet sizes. So if
you have cleaning to do or if you need certain kinds of chemicals, you don't buy a one-day supply or a one-week
supply. You buy it in monthly or quarterly or annual consumption units and you save tremendous amounts of money. [ Pobierz całość w formacie PDF ]

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