Sign in or 
| Version | User | Scope of changes |
|---|---|---|
| Jan 16 2009, 1:28 PM EST (current) | stomperformula5a | 231 words added, 1 photo added |
| Jan 16 2009, 1:26 PM EST | stomperformula5a |
Changes
Key: Additions Deletions
Stomper Formula 5
F5 Stompernet - You can double your income and your business almost instantaneously.
Example:
You have a product selling for $39 and sell 8000 units, after deductions and stuff, you have a net profit of 32K, your break even volume is 9061 units.
Not a competitor gets in town with a similar product sold for $35, you automatically drop the price by reflex. Second column… your net profit went down to ZERO. You are in the path of bankruptcy and you might not even know it… That is a decrease of 15%.
Now suppose that instead of cutting prices as a reaction, you increase your effort in marketing. You increase the visibility of your product, you improve the package, you give the feeling to your market the value has increased, that something is going on with your product and that they will find out soon what it is. You increase your price in 15%, with everything else the same… you profit DOUBLES.
Note: Information products are insensitive to price changes.
If you don’t do anything else, do a sensitivity analysis. And see what is going to happened with your business before taking decisions.
You can forget about being tight or asking for loans… your business will have the chashflow to sustain and grow by itself. The reinvestment in
business development will give it what it needs to grow.
F5 Stompernet - You can double your income and your business almost instantaneously.
Example:
You have a product selling for $39 and sell 8000 units, after deductions and stuff, you have a net profit of 32K, your break even volume is 9061 units.
Not a competitor gets in town with a similar product sold for $35, you automatically drop the price by reflex. Second column… your net profit went down to ZERO. You are in the path of bankruptcy and you might not even know it… That is a decrease of 15%.
Now suppose that instead of cutting prices as a reaction, you increase your effort in marketing. You increase the visibility of your product, you improve the package, you give the feeling to your market the value has increased, that something is going on with your product and that they will find out soon what it is. You increase your price in 15%, with everything else the same… you profit DOUBLES.
Note: Information products are insensitive to price changes.
If you don’t do anything else, do a sensitivity analysis. And see what is going to happened with your business before taking decisions.
You can forget about being tight or asking for loans… your business will have the chashflow to sustain and grow by itself. The reinvestment in
business development will give it what it needs to grow.
