When it comes to getting more sales and growing a business, most entrepreneurs ignore one of the most effective things they can improve: the offer itself. The right offer can not only close more sales, but result in more revenue on each sale.
When clients review pricing information, they're thinking about whether your offer is worth the price you're asking -- making this is one of the best opportunities to give them something they can't resist.
Research shows that the right presentation of fees can result in a dramatic increase in sales. To find the most effective ways that services and fees can be presented, we at Bidsketch researched over 25,000 proposals worth $270 million. We also looked to results from some of the most successful consultants around, and a famous study on the psychology of choice.
Here are a few of our key findings:
- On average, only 34 percent of traditional estimates and proposals are accepted by clients
- Having fewer fees but keeping the price the same resulted in 36 percent more deals
- Giving just the right amount of options can increase revenue by 32 percent.
Ruben Gamez is a bootstrapper and the founder of Bidsketch, a web-based proposal app for freelancers and consultants.
The Young Entrepreneur Council (YEC) is an invite-only nonprofit organization comprised of the world’s most promising young entrepreneurs. The YEC recently published #FixYoungAmerica: How to Rebuild Our Economy and Put Young Americans Back to Work (for Good), a book of 30+ proven solutions to help end youth unemployment.