Franziska: Hi and welcome back! I wanted to quickly share a question with you and that question is when was the last time you reviewed your pricing, and also, are you charging enough for what you offer? Do you think the price that you have on your products or services is enough? And the reason why I’m asking that is because a lot of our members here at Basic Bananas have been split testing different pricing and different price points and it’s very interesting how sometimes–most times, in fact, an increase in their prices has had zero impact on the demand. So a lot of our members have managed to increase their prices slightly, justifiably, of course, it needs to justify and have enough value in order to be able to do that, and it’s had zero impact on how many people actually are buying the product or service. So, of course, that will then~ often that increase in pricing whether it’s 10% or less or more, often will go straight on the bottom line. And it’s not only more revenue, but often the profit will go up quite substantially because there’s usually not a big increase in expenses when you increase your pricing; also, sometimes again… you have to be very smart about it I’ll tell you how to do it but if someone’s reviewing your pricing will also give you better customers and I will quickly go a little bit textbook on you just for one second and explain the concept of price elasticity. And price elasticity basically will tell you what is~ and how you measure price elasticity is you take the percentage of the demand that you have usually divided by the percentage of change in price and don’t worry if you don’t want to understand any of that. The only thing you need to understand is that it tells you how much if at all, the demand changes if you change your prices. And a product or service or a business that is inelastic means that even if your prices go up or down the demand stays the same. A product or service business that is elastic means that if your prices change your demand will change. So what you will see a lot is actually that oftentimes, your product or service is inelastic. So even if you change your pricing it won’t have a big impact on how many people actually want it. Sometimes we even see the opposite; sometimes we see businesses that have gone up with their prices and then they had more people wanting it. That’s very interesting concept. But if you think about it, it depends on what kind of industry you’re in and if people are expecting a premium product or service, they also expect a premium price. Now here’s quickly a list that I wanted to share with you in terms of how you can figure this out so what you want to do is you want to run split tests. You want to run tests on your pricing and split test different prices. If it’s for a smaller priced product, so not a high-end product, here are four things you can do. Number one, you can create~ if you have a product, you can create two landing pages, one for each different pricing. Number two, I’ve talked about this before… use specific pricing. So instead of charging 150, you charge 159 or 149. So more specific pricing. Number three, once you’ve got these two landing pages or more you then run advertisements in whatever channel works for you whether it’s Facebook, Google, Instagram, Linkedin, Pinterest, you advertise to each of these pages and you see which one converts better if any of them at all. Sometimes they convert equally as well then you know you have a very inelastic product there because it doesn’t matter if it’s more expensive or cheaper, or you will see that one or the other number will perform better. And then number four revisit those results every few weeks and then just see~ do you need to adjust your prices? Do you need to go up? Do you need to go down? Most likely not. Do you need to make the pricing more specific? Now, if you are in a more higher-end market where you sell more higher-end items, you can’t just split tests like that because it’s very you don’t have a huge quantity of people that come and buy from you, then what you can try is just put your prices up a little bit. Maybe five percent. Maybe 10 percent. And see what is the response if any at all, in your customers. Do they care? Do you get more customers even? Do they convert better or do they convert less? To be honest the pricing usually has to do a bit with your own mindset, with your own money psychology. As long as you feel comfortable, as long as you feel comfortable with the price that you’re charging, you probably will be doing well. If you’re charging a price that you don’t feel comfortable with, you probably won’t sell. So start with that too when it comes to pricing the higher-end item and then make sure you let us know how you go. I think it’s a really good time right now as you’re working on your business, review your pricing and see if you can adjust them in order to either sell more or to make more revenue and definitely more profit. And as always if you know someone who needs to hear this message please share it with them and thank you so much for being here too. Can’t wait to see you on the next video.