Wanted to throw another little tidbit your way peeps. It's about lifetime value. It isn't necessary to make calculations based on the "real lifetime value" of a customer, meaning how much they spend from the very first day to the very last purchase they ever make.
Try shortening the lifetime...
Clarification here...
Revenue to cost of service (marketing dollars spent) ratio = total lifetime gross revenue / price of your service
Thanks to JayBay for bringing this to my attention
Figures you'll need:
* price of your service
* number of new customers projected (very conservative estimate from you)
* gross lifetime revenue per customer (figure obtained from your customer)
Calculations
* customer acquisition cost = # of new customers projected / price of your service...
Some people will argue that it's better to charge less and have more customers. And there are valid points to the argument. Personally, I would rather have fewer customers who pay more. Makes it easier to handle the logistics and to be selective with who I do business with.
It's best to...
Good that you have a plan. But you guys and gals drive me up the wall with your pricing.
Absolutely nothing should be priced at $97 per month. I see this and immediately think you used IM products to determine pricing.
$97/month for email marketing and list building. Excuse my french, but...
Being the cheapest price is a HUGE MISTAKE.
Value is associated with price. Don't believe it? Just take a look around. You will grow to hate this business if you continue to insist on ridiculously low pricing. It simply requires too many clients to make it worth your time. Speaking of which...
As someone who has driven a taxi for a living, let me offer you some input. The very first thing you need to know is the company's business model. Specifically, how does the taxi company make its money.
The most common way (in the United States) is to lease the taxis to "independent...
Never under value your service and expertise. You know how to do something that they don't. You're a specialist and should be compensated as such.
Don't be so hard pressed to get the sale to the point where you rip yourself off. Higher prices reflect your knowledge, skills, and worth.
There...
Excellent job OP. A definite advantage of bigger fish at higher prices is that you can make just as much money (if not more) with FEWER customers/clients. Work smart - not hard! I love how your test turned into something more than you had expected. The moral of the story folks, is that the...
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