Double your net profits – $4,000 Suit problem solved:
Last week on my blog, we talked about the article in the NY Times called, “What’s a $4,000 Suit Worth?
The article posed an interesting problem about how to increase revenue in a specific situation. You can check it out right here.
Today, I want to give you the answer:
Look, in business… there are only 3 ways to make more money:
1. Get more customers – which in this situation, as you can see… really isn’t a viable option, since he’s maxed out on capacity.
2. Increase prices.
And this is DEFINITELY the easiest way to go.
See, one of the smartest marketing strategies you can do, is to take any perceived weakness and turn it into a strength.
In this case, only being able to manufacture, say… 25 suits a year (one every two weeks or so), should be positioned and turned around, into something like…
“Finest Quality suits, 100% custom hand-stitched. Limited to only TWO per person”
Now, Peter Frew’s story can be completely different.
Instead of “Poor me, I can only do so many of these, per year,” the message is “Hey, I can only make 25 of these bad boys, and so you’d better get lined up good and early to grab one of them.”
The key here, is to put this message in front of people who regularly buy custom-made clothes. And although I’m not familiar with this marketplace, I’d be willing to bet LARGE, that the people who buy this… are like golfers and bass-fishermen — they buy as MUCH as possible and as often as possible, to indulge their “hobby / passion.”
With some good marketing messages, and a two-step lead generation campaign (using videos, which show the fabric and the manufacturing process), I’m sure he’d be booked up 1 to 2 years in advance, very quickly.
Peter’s got a GREAT story that he’s not fully leveraging: “He was one of maybe a few dozen people in the U.S. who could construct a true bespoke suit. Frew, who apprenticed with a Savile Row tailor…”
You expand on this story and explain what this REALLY means… and you put this message in front of the right person — I’d be SHOCKED if he wasn’t able to get two to three times more for each suit — for starters.
Even with a HIGH (say $1,000 customer acquisition cost), he would at LEAST double his net profits, this way.
3. Lastly, the third way to make more money is to increase the amount of money people are spending, each time they do buy.
In other words, you increase your customer value.
And this is also very easy to do, in this case.
And, there can be little to NO work involved for Peter.
The answer is simple: He should offer other goods (and potentially services) with his suits.
For instance, custom shirts, ties, and shoes, at a minimum.
He can refer the work out to other people who do this. And, he can also have some “standard,” NON-custom but still VERY high-quality items, which he could broker, for a fee.
No inventory would be involved here – simply a referral.
And, if he was really ambitious, he can offer other kinds of services, like “Dressing for success” type of consulting. You don’t think some of the more prestigious Wall Street firms would hire him for this?
Or would bonus their top performers with his suits?
Of course they would.
In fact, if he was SUPER ambitious, he can have some kind of networking affairs for all his customers. I bet guys paying $8K for a suit wouldn’t be opposed to meeting other guys doing the same, right?
He can also have newsletters that promote himself (which can ultimately turn into an advertising stream of revenue for him)… honestly, the list is endless here.
Pretty good, no?
Oh, and by the way — in Chapter 12 of my book, I show you a VERY simple strategy that increases your customer transaction value substantially — and this strategy works as much as 98.4% of the time.
Now go sell something, Craig Garber
P.S. How To Make Maximum Money With Minimum Customers – LIFETIME Guarantee Included
How To Make Maximum Money With Minimum Customers – Amazon.com
Coming next week: The Maximum Money Club
listening to: Iggy Pop – Cry For Love (1986)
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