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Stomper Formula 55

stomperformula5a — Thu, 22 Jan 2009 08:55:45 CST

Stomper Formula 5

FormulaFIVE - Rescue fantasy:

Most business owners operate with what he calls the rescue fantasy. There is only one piece missing to the puzzle, if I manage to learn it, I will be rich. He asks: are you really willing to risk everything on that one thing? What are the odds?

With formula five, you don’t need to be good. You just need to be steady, you need to follow the steps and execute them.

To increase a 15% of the different stages of the business is actually a doable thing to do. The compound of those efforts, lead to big results-> your business WILL DOUBLE. And it will double as soon as you have done these changes.

If you can’t make it to 15% in any of the activities, not a big deal… you will do it in stages. It will take more time, but you will see results and you will get to double your business, when you get to the 15% in each activity.

Increase the value of your product, to increase the price tag.

Stomper Formula 54

stomperformula5a — Wed, 21 Jan 2009 09:30:05 CST

Stomper Formula 5

Stompernet Formula5 Case studies:
The prices increase didn’t show a decrease in the sold volume. The present price tag is $3600. People pay it without hesitation because they have a great return over the investment. They only needed to work on showing the value better to get there from the previous price of $3000. In information products, you can put the price tag that you want because there is nothing to compare them to.

One client that sells business to business products that the chances of making a sale are:

It is way easier to sale to existing customers than to new customers. Divide the effort you use to attract new customers in half and use that time and resources to market new products to existing customers.

There are some concepts you need to get familiar with:
Cost of customer acquisition: how much you pay to bring a new customer.
Average transaction size: how big is the average transaction for each customer.
Frequency of purchase: how often your customers purchase from you.
Life of the customer: how long they keep buying from you.
Lifetime customer profit: how much profit the customer gives you during the lifetime as a customer.

Stomper Formula 53

stomperformula5a — Tue, 20 Jan 2009 10:49:13 CST

Stomper Formula 5

Stompernet F5 - The secret formula
1. Compounding.
2. Work each of the 5 doing ONE thing at a time.
3. Doing something incremental; not brilliantly, but consistency.
4. No perfection, just execution (you don’t have time, just get it done).
5. Ccontinue cycling small changes.

There are different formulas to attack the different things to improve.

Increase the value of your product, to increase the price tag.

You need money to reinvest in your business, or your competition will outmarket you easily and can take you out of business.

You need then, to increase your margins to reinvest them into business development.

Here is how it works, and it works every single time:

Increase the value of the product, increases the ROI of your customers, allows you to increase the pricing and that provides better margins.

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.

Stomper Formula 52

stomperformula5a — Mon, 19 Jan 2009 09:26:30 CST

Stomper Formula 5

FormulaFIVE - Do you actually believe that if you focus on just 5 things, if you spend your time in just 5 important things your business will double?

Formula 5 is a new program released by Paul Lemberg. It allows you to double, or even more your business, in a few months.

The secret formula
1. Compounding.
2. Work each of the 5 doing ONE thing at a time.
3. Doing something incremental; not brilliantly, but consistency.
4. No perfection, just execution (you don’t have time, just get it done).
5. Continue cycling small changes.

There are different formulas to attack the different things to improve.

Increase the value of your product, to increase the price tag.

You need money to reinvest in your business, or your competition will outmarket you easily and can take you out of business.

You need then, to increase your margins to reinvest them into business development.

Stomper Formula 51

stomperformula5a — Fri, 16 Jan 2009 12:28:37 CST

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.

Stomper Formula 5

stomperformula5a — Thu, 15 Jan 2009 21:22:33 CST

Stomper Formula 5

Stomper Formula 5 - You can double your income and your business almost instantaneously.

Low prices are ONLY for deep pockets businesses. Wallmart, Target, they can take pretty much any store and lower the price of anyone… and they can survive because they have deep pockets and can go with negative cashflow for quite an amount of time. They can make it up in profit, but you CAN’T. And if you think you can, you will broke in no time. If they believe that the return to them exceeds what you are asking them to pay, i.e. the net price is ZERO, they will pay almost any price you ask for. If you keep this in mind and increase your prices, the result will be a good amount of money coming to your bottom line allowing you to reinvest in your business and grow.

Why people will pay more?
If you do anything or all of these 4 things people will willingly pay more.

What else people is willing to pay more for?
Story: he bought a digital camera. He usually buys them from a cheap store. They don’t process your order if you don’t call them to verify your credit card, when you call them they try to upsell you… He got finally fed up of them and bought it from Amazon, at a 12% higher price of he could have paid there. Why? A better experience… 2 clicks and that’s it… 2 days later the camera arrives.

There is still another reason why people will pay more:
They recently doubled their prices and didn’t give any explanation for it, they only said… we think it is time to do it. Do your cahsflow analysis and see how the increase will impact your business… then choose one of these tactics and implement it.

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stomperformula5a — Wed, 07 Jan 2009 07:44:04 CST