In all walks of life, there are plenty of examples of businesses offering premium levels of product or service. Theatre tickets, airfares, hotels – they all have different levels of price that people can choose to pay.
Yet it is much more unusual to find premium products or services in small businesses. Implementing this in your business can, however, generate a double-digit percentage increase in profit immediately.
To give an example, I work with a chiropractor who said this couldn’t possibly apply to his business. He tried it, and quickly saw he was wrong. He now has different prices for his appointments depending on the time of day.
If you want to see him first thing in the morning or in the early evening then you pay a premium price. His lunchtime prices are also more expensive than his standard price. If you want to pay the lower price, you can, but you have to see him between 9 AM and noon or between 2 PM and 5PM.
He’s introduced premium pricing to reflect the time of day and the result has been an increase in his profits of over 20 per cent in the last 12 months for exactly the same amount of work – and he’s lost no clients.
Almost every business has the opportunity to introduce a premium product or service. Dry cleaners do it, my local taxi company does it (you can pay £5 extra and get a “gold car” (ie a slightly more up-to-date and cleaner vehicle than the usual eight-year-old Nissan Bluebird!).
It’s there for everyone. What’s your premium price offering?
Nigel Botterill’s book, Botty’s Rules (Vermilion), is out now.
Read Botty’s other rules:
Rule 2: Data is your most valuable asset
Rule 4: Follow up, follow up, follow up
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