How can Richard Branson help you make more money?

25th June 2016

Caroline

Business Strategy & Growth

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We’re accountants so we get far too excited about numbers.  And we really, really like helping our clients make their numbers bigger.

One great way of doing this is through looking at ‘Premium Pricing’.  This is where you have a standard product or service….and then offer an upgrade to a better version.  The upgrade is something of value to the customer, but usually something that also gives you a bigger profit.

A simple version of this is the trains.  If you want a return train from Liverpool to London, you can pay Virgin around £80.  But, if you want to travel early in the morning, it costs nearly £200 extra.  And, if you want to go First Class, it’s another £200 on top of that.

You see, Virgin know that the early train has a massive value to the passenger (or the passenger’s business).  It gets you to the meeting on time, and avoids a night in the hotel – so is worth £200.  But the cost to Virgin is buttons.

It’s the same with First Class – the value is in the extra comfort, a chance to work on the journey, free wifi and a snack at your seat.  But it doesn’t cost Virgin £200 to lay these things on.

So, where can you find a ‘premium’ product in your business?

There’s one in every business.  It could be quality, speed, timing, size, convenience, or anything that gives that something ‘extra’ to your customer.  It’s important that the customer gets value for the upgrade, even if the cost to you isn’t large.

Not everyone wants or needs the premium packages but there will always be someone who does.  So, if you don’t offer premium products, you’re missing out on the opportunity for extra income.

So have a think about your premium products, and let us know what you come up with.

Thank you to Jonathan Davies of  MJF Accountancy, the Liverpool accountants for entrepreneurs, for this blog.

Do you know anyone who would like to join the MJF team?

We’re growing at a rapid pace.  As forward-thinking accountants for entrepreneurs, we’re taking on new clients every month and our team is growing.

We’re looking for a qualified accountant to join our brilliant team.  They will be the main point of contact for a portfolio of clients, with responsibility for the delivery of an excellent service to each client.

If you know anyone who might be suitable, please point them in the direction of the job spec on the MJF website – you can read it here.

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