People often overlook this straightforward, effortless way to increase their business’s profits: increase your prices. Most people tend to undercharge for their services, so try increasing your costs as a test and see what happens. Funnily enough, most people perceive something that is higher priced as higher quality, which can encourage people to buy your product or service. As you increase your prices, you’re also receiving more per sale, increasing your profit margin. Take this strategy a step further and target higher-value clients.

For example, if you run a business coaching company and currently charge $200 an hour for your time, increase your rates to $1000. With the perceived higher quality and value in your coaching, target businesses that make a lot of money vs. those barely getting by. In this example, one client would be worth 5 of your clients in the past. Not only have you raised your hourly rate, but you’ve decreased the amount of work you need to do to earn the same amount of money.

We’ve had an exciting example before when we’ve sold courses or software for $7 vs. $497 vs. $997+. Although the $7 price gets the most conversions, the $997 price would almost always make more money. You have to make sure you do an excellent job of showing the value!

So test out this simple tip and try increasing your prices and targeting customers who have more money to spend on your product/service.

For more easy ways to grow your profits and increase your sales check out this book: 50 Marketing Tips & Tricks Learned After $100 Million in Sales Over 20 Years!.