Ep #51: Per Sjofors: Unlock the Secret to Setting Prices That Skyrocket Profits

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Struggling to find the right price for your products? Discover the best pricing strategies tailored for small businesses to boost profits and attract more customers. Watch this episode and transform your pricing game!

In this episode of the Business Growth Architect show, I am speaking with Per Sjofors, aka “The Price Whisperer” an expert in pricing strategies. Per’s deep insights into the world of pricing and discounting offer valuable lessons for any business looking to boost profitability and growth.

Our discussion kicks off with a look at a common challenge faced by many service providers: setting the right price for services that clients might not be familiar with. Unlike professions with established pricing structures like legal or accounting services, the idea of “pricing” is a relatively new idea when it comes to increasing profits. 

Per highlights the struggle businesses face when they don’t have a clear reference point for pricing. To tackle this issue, Per recommends a bold approach—substantially increasing prices while offering a guarantee. Imagine doubling or even tripling your prices with a promise to refund a portion if the results aren’t as expected. This strategy not only positions your services as high-value but also minimizes the perceived risk for clients.

We also dive into the psychology behind pricing and discounting. Per introduces his "1% challenge," which encourages businesses to explore how a 1% change in pricing or discounting can impact profitability. He reveals that increasing prices or reducing discounts by just 1% can lead to a profitability boost of up to 11.3%. This underscores the significant impact that small pricing adjustments can have on your bottom line.

Our conversation discusses discounting. Per stresses that excessive discounting undermines perceived value and reduces profitability. He shares how companies can avoid heavy discounting by training their sales teams to focus on delivering a compelling value proposition. Rather than competing on price, your salespeople should be equipped to demonstrate why your product or service is worth the premium price. This approach not only protects profit margins but also attracts clients who are willing to pay for quality.

Per also discusses how pricing affects customer expectations. High prices often set higher expectations for quality and benefit, a phenomenon known as "expectation bias." He cites academic research showing that consumers perceive higher-priced products as more effective, even when the actual cost difference is minimal. This highlights the importance of setting prices that reflect the value you deliver and align with customer perceptions.

Please explore Per Sjofors’ resources and consider how his thoughts on pricing strategies will benefit your business. Visit Per’s website to download guides, use the 1% calculator, and learn more about his masterclass. I’d love to hear your thoughts and insights from this episode, so feel free to share and engage with Per’s content. Your

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