ProBizTips Newsletter
** ISSUE #278 **

Monday, March 8th, 2004

Get Trained by World's Top Marketers LIVE!

A Word From Diane

ProBizTips Feature Article
Raising Your Rates Can *Increase* Your Business

Ask Me Anything
Answers For Skander Chida

ProBizTips Guest Article
How To Build Long-Term Profits at Zero Cost

ProBizTips Pick of the Week
Resale Rights Secrets

ProBizTips Business Review
AtoZ Web Tools

ProBizTips Business Tidbit
4 Ways To Save A Dying Product

Discount Mania

Weekly Cash Contest
Winner of the Week
(Will YOU Be Next?)

Weekly F*R*E*E*B*I*E
44 Real-Life Merchant Account Answers

Leaving With a Laugh

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Hey!

Good Day to you and I hope your day is going well so far! :)
Welcome to all our new subscribers this week and I hope you grow
to love us as so many have ... we couldn't do this without you!

I've been having a *blast* in the forum lately and I thank all of you who are participating and corresponding with me regularly! If you haven't checked it out lately or haven't checked it out at all... you're missing out! Please join us! :)

Secondly, Net Profit Secrets (my new "baby") is doing *very* well and I'm enjoying that, too! We have an *awesome* expert panel and have just added some experienced contributors to the list.... you can't miss out this. The price will go up on March 12th (that's this Friday), so if you're toeing the line on joining... do it now! There's no risk involved (100% money back guarantee) and you'll lock in the fee at it's current introductory rate.

Last, but not least -- in case you didn't get the ad sent earlier this morning, Ewen Chia has just released a *very* unique product on resale rights products. This has never been done before and it's your chance to learn everything you need to know about making it online selling ready-made products! Don't miss it....

In the meantime ... sit back, relax and enjoy today's issue!

Your Friend,

Diane Hughes
ProBizTips Weekly

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Raising Your Rates Can *Increase* Your Business
by Diane Hughes

How many times have I heard literal horror stories from Internet business startups? Too many times to count! I get emails from those who just simply can’t seem to make a living online. They’ve tried everything (according to them) and are still struggling to make ends meet.

At some point, the "conversation" always turns to price. That’s where I find a lot of online business people making their mistakes. The common mindset among Internet business startups is that you have to keep your prices rock-bottom low in order to attract customers.

Nothing could be further from the truth! Raising your rates (in some cases) can actually increase your business. How so? Here are several reasons....

1. People Equate Price With Quality

I’m sure you’ve heard the expression, "You get what you pay for." That statement comes from a long line of lessons learned by people across the globe who have bought something at a discounted price and regretted it later.

Maybe the product was used. Maybe it was made with inferior materials. Perhaps a "discount" service they tried fell through and left them in a fix. It could be any number of reasons, but those who have tried the "bargain" or "discount" route and have been burned are quick to look for higher priced products and services. It makes them feel safe.

I know of several online business owners who raised their rates on the services they provide. What happened? For about one week it seemed they had made the wrong decision. Business all but stopped! However, after that "adjustment" period, floods of leads came rolling in. They never regretted it.

2. Customers View Higher Prices As A Status Symbol

It’s true! I’m sure you’ve met some people who love to brag about how much they paid for everything they own. Their car was custom ordered from the dealer and cost much more than any old car chosen from the showroom floor. Their clothes reflect this season’s latest trends and were purchased at full price from the expensive department store... NOT at an end-of-the-season clearance sale. I could go on and on.

The point is, many customers simply will not buy a product or service at a discount price regardless of how good the quality is. They have the "ability" to afford higher prices and are proud of that fact.

3. Many Believe Expensive Products Are Image Boosters

I actually heard this conversation in a department store once.

Woman One: "Look at this blouse! Isn’t it wonderful?"

Woman Two: "It’s OK, I guess."

Woman One: "But it’s an Adrian Bloom blouse!
I’m going to buy it and make all my friends jealous."

Woman Two: "Who is Adrian Bloom?"

Woman One: "I have no idea, but this blouse costs twice as much
as that Liz Claiborne one so it must be the next big thing!"

Can you believe it? The woman had no idea who the designer was, but based on price, she decided it would enhance her image so she bought it.

The same is true of Internet shoppers looking for products or services. Those who believe being associated in some way with higher-priced businesses are more willing to spend money because they feel it will enhance their images.

The psychology of pricing is a complicated subject, and I’ll be the first to admit that raising rates will not work for everybody. Before you raise your rates, consider the following:

1. Can you offer something better or different than your competition?

2. Will the rest of your business support the "branding" of a higher price? (i.e., Do you have a very professional-looking site, excellent service, and other elements that those who pay higher prices expect?)

3. Will the new pricing structure allow you to make as much, or more, money by selling fewer items at a higher price rather than many items at a lower price?

It just might be that the reason your business is struggling is that you’re charging too little. Give some serious thought to raising your rates. It just might be the best thing you ever did!

--------------------------------------

Diane C. Hughes * ProBizTips.com

FREE Report: Amazingly Simple (Yet Super Powerful)
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I have been receiving unsolicited junk mail from people who have no business ethics when it comes to e-mailing people. They are using third party servers and fake e-mail addresses.

What's at stake here is the reputation of Internet marketing. Those people are the rotten apple in the basket, and because of them, using e-mail as an effective marketing tool might loose its legal footing.

My question is: are you receiving this type of junk mail, and if yes, did you do anything to stop it? What kind of programs are they using? and why are they hiding their identity if they mean business?

It seems to me that the Internet has create a new breed of pirates, a mold so to speak, a faceless type. What can we do to fight this ever-growing mold, and stop it from becoming epidemic?

Thanks for your time and keep up the good work!

Your friend,

Skander Chida

-------------

Hi, Skander!

I wholeheartedly agree with you... it IS becoming an epidemic and no new laws are helping any (in my opinion).

The problem here is that most "bulk emailers" or "spammers" use foreign servers and U.S. laws have no bearing whatsoever.

I DO get these emails and it's gotten so bad that I had to take alternate measures and start doing what I never wanted to have to do... "filter." I simply could not sift through the hundreds of spam emails I got everyday and still run my business efficiently. It got so bad that I missed important emails regularly because my eyes got so tired and I mistakenly deleted them...

I searched long and hard, high and low for a service that would allow me to filter safely. I wanted to ensure that I would never miss any important emails or emails from my friends, BUT I didn't have the time to "train" my filters (like a lot of services and software programs). I found a great service called MailShell that allows me to do this. Yes, I have a solution for my Net Profit Secrets members that's free called SpamYard, but I needed something I could use with many email addresses and on a server level if need be. I've been using this service for months now and it's cut my spam down considerably.

I still have to check my bulk folder every now and then to make sure nothing got filtered that was important, but it takes a lot less time... :)

Hope this helps!

------------------------------

Just as the name implies, ask me anything.
If I don't know the answer, I'll find it.

How To Build Long-Term Profits at Zero Cost
by Tom Leous

Remember the last time you received a heartfelt and sincere "thank you!" for ANY purchase?

If you find yourself scratching your head, you're not alone.

Interested in generating ongoing, long-term profits at zero cost?

Well, one of the simplest and most effective ways to do so is with a simple and sincere 'thank-you!'.

Sadly, appreciation is rarely shown to customers these days. When it is, it's often insincere and not used enough. And... it doesn't cost anything!

How much do you spend on advertising, on tracking advertising results and on order processing and product delivery? How much do you invest in strategic partnering and joint ventures to gain targeted traffic?  

Did you know it costs seven to ten times more to gain a new customer vs. the cost to retain them?

Focusing mainly on gaining traffic, visitors and sales, many businesses simply forget about... or worse... ignore the need to show ongoing appreciation for their customers.

The result is 'customer churn' - and a double cost 'hit' to businesses. First is the initial high cost to gain customers, then, the same cost is paid again, to replace the customers who didn't feel appreciated and left, with brand-new ones.

In severe 'churn' situations, it's like a revolving door. Large portions of the customer base constantly replaced at a very high cost. The result? Low customer retention and no real business growth. Not where you want to be.  

The solution? Change your focus away from you, your business and your success... and focus squarely on your customers and potential customers.

Get into the habit of showing your customers appreciation at every opportunity, and you'll cheaply build a profitable, long-term business. To learn more & get a FREE bonus, click: http://www.workathomebusinesstips.com/dt/t/394/

But, at EVERY opportunity? Why bother?

Because customers make it all possible. They put revenue and profit into your pocket. Customers pay for your vacations, your car and mortgage payments, your kids school tuition and various 'creature comforts' you enjoy.

They make it ALL happen. Not focusing on your customers puts your entire business... your living and lifestyle... in jeopardy.  

Without customers there are no sales, and without sales you're out of business. End of story. Never forget this truism... "If you don't take care of the customer, someone else will".

And that means never, ever, EVER being 'too busy' to show appreciation and say "thanks" for your customers business... for they're the lifeblood of your business.

Every chance you get, whenever the opportunity presents itself, take time, no matter how busy or stressed out you are... to say a warm and sincere "THANK-YOU!" to each and every customer. And don't forget your visitors... they're your future paying customers.

You'll never retain 100% of your customers... that's unrealistic. But getting into the 'thank-you' habit will help you retain as many as possible.

Making a concerted effort on this front can result in a 2% or 3% improvement in your business. And over five years, that becomes a substantial competitive advantage you'll leverage into increased customer loyalty, and more business and profits.

Remember, on the web, your competition is only 1 click away. It takes very little to lose a customer. So don't ignore that little 'thank-you' opportunity when you get one.

Thank your customers for buying, for their questions and feedback and for referrals. Thank them when they request a refund, when they opt-out of your eZine, or when they express their dislike or displeasure. (Knowing 'what's wrong' helps you to improve your business even further).

Thank your customers for everything. In other words, 'kill 'em with kindness'. It's the cheapest way to build long-term profits and business success.

---------------------------------

Tom Leous is a sales & marketing professional with 25+ years
experience. His experience includes managing an Internet B2B
sales organization, and a $50 million dollar affiliate sales
channel. His current Internet business utilizes his extensive
background to help the home businessperson achieve successful
startup and success. http://www.workathomebusinesstips.com/dt/t/393/

Resale Rights Secrets
*JUST RELEASED TODAY*

OK -- I'm a little biased on this one. I've sent out a solo ad earlier this morning, I mentioned it in my editor's notes above, and now I'm putting it in my *Pick of the Week* section. Why? I'm one of the people Ewen interviewed! :)

However, I've read through the entire 235 pages of this sucker and I tell you, it looked like a wind storm blew all my stickies all over my desk when I was done reading and taking notes!

I've been doing business online a long time and I've made much of my online profits through ready-to-sell products with resale rights. There are many misconceptions that you just slap up the ready-made site, setup your payment and download links, and you'll start making the income you were dreaming about. Not so -- there's so much more to it and Ewen drags out all our secrets!

Yeah... I know -- you've heard THAT before, but most of you know me well enough to know that I don't "yank your chain" and I don't exaggerate.

Seriously -- just check it out.

A To Z Webtools
Submitted by Melanie Sannan

To tell you the truth, I don't know a lot about this site -- in fact, someone posted on the private Net Profit Secrets forum wanting to know about this very same site. I started to join so I could give you a better, more informed review but couldn't bring myself to do it...

Why?

I have all these tools and many can be found in much better packages. My favorite?

Push-Button Publishing

You can't go wrong there and Bryan Winters is top-notch!

I'm not trying to cop-out and refer you to a friend's service, but I'm being honest in that I can't see anyone paying for AtoZ WebTools when you can have everything you get in Push-Button Publishing for about the same price...

---------------------------------

Are you considering a new product or service?
Submit it here and I will do my best to check
it completely and give my honest review ... :)

4 Ways To Save A Dying Product
by Larry Dotson

1) Create A New Niche

Create a new niche for a current product. You can set yourself apart from your competition by creating a niche. Your product could be faster, bigger, smaller, or quicker than you competitor's product. For example, if you sell downloadable software, your niche could be that it downloads faster than your leading competitor's.

2) Add On To It

Add on to an existing product. You could package your current product with other related products. For example, you could package a football with a team jersey and football cards. Another example, you could package flowers with greeting cards, gifts, candy, etc.

3) Create A New Market

You could create a new market for your existing product. For example, if you're selling plastic bottles to a pop company, you could turn around and sell those bottles to a fruit drink company. For example, if you are selling an e-book about dating tips, you could also sell it at a bulk group rate to online dating web sites.

4) Combine It With Others

Combine two or more products together to create a new one. For example, you could take a briefcase and add a thermos compartment inside to keep a drink hot or cold. Another example, you could take an e-book and link it to a related online message board.

---------------------------------

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Little Johnny and Susie, each five years old, were playing house. They both decided it was time to get married.

So Little Johnny went to Susie's dad to ask for her hand in marriage. "Where will you live?" asked Susie's dad, thinking this was cute. "Well," said Little Johnny, "I figured I could just move into Susie's room. It's plenty big for both of us."

"And how will you live?" "I get $5 a week allowance and Susie gets $5 a week allowance. That should be enough."

Getting exasperated since Little Johnny seems to know all the answers, Susie's dad asked, "And what if little ones come along?"

"Well," said Little Johnny, "we've been lucky so far!"