Make A Good Product + Price It At A Premium = Super Profit Guaranteed

How to Justify Premium Pricing for Your Product

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Image created using Meta AI. The prompt used to create the image is shared in the post

Introduction

Given a choice every business would want to make maximum profits or at least optimize their business to make healthy profits..

Isn’t it obvious? When you make good profits, you will have to sell to a smaller set of audience and yet make better profit margins as compared to competitors in your industry.

The easiest way to visualise this example is to think of a hot-dog stand on the same curb that’s 20 steps away from a fine dining restaurant.

There is a good possibility that every day, just one customer’s food bill could surpass the entire day’s worth of business of the hot-dog stand.

Every couple of days, one customers’ bill of food and wine would be more than the hot dog stand’s weekly revenue.

You know what the heights of this are. At least once every month, a visit from one of the corporate bookings of about 10-15 people would rake up a bill that would be more than the hot dog stall’s annual revenue.

Let’s figure how some businesses manage to sell at a premium, while most businesses struggle to survive.

Fundamentals of High Profit Businesses

There are only two things that you need to understand about businesses that make high profits (as compared to other peers/ options in the market)

01 - They offer the best/ the most unique product to the customer.

A business will never be able to make high profit margins on a product/ service that’s not the best in terms of quality, decadence, presentation, packaging, etc.

You can’t afford to keep any stone unturned, if you’re interested in making high profits.

And offering the best/ the most unique product leads you to the second factor of high profits

02 - Premium pricing leads to higher profits.

Higher profits are always going to be a byproduct of premium prices.

Economical pricing sells volumes, but it takes a lot of effort (when compared to a product being sold at a premium).

In case you’re confused/ have forgotten, read the fine dining restaurant vs. hot dog stall example again.

Conclusion

It’s pretty straight forward isn’t it?

Implement the two rules mentioned earlier in your business and scale your business to highest profit margins in your industry.

Forget about selling at a premium, are you struggling to sell your products to your prospects? Are you tired of dealing with a dry pipeline of quality leads and would like to change this situation for your business and life? Consult with me for the same, feel free to reach out to me and let’s connect.

Your Thoughts!

If you’ve reached till this point of the post, I’m sure you must have some thoughts/ feelings/ opinions about what you’ve just read.

I’m done sharing what’s on my mind, and now is your turn to share your POV.

Tell me how you are processing the information that you’ve just read?

Do you agree with my thoughts?

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Let’s continue this conversation (or ask your questions about the post) in the comments below.

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Prompt used to create the image for the note

P.S.: Image made on Meta AI using the prompt, “Imagine a business owner at the store selling extremely premium products to their customers”