I’m a big fan of CAPACITY BASED PRICING!
Capacity Based Pricing - Robin Waite

I’m a big fan of CAPACITY BASED PRICING!

During a study, and while reading a book called The Goal by Eliyahu Goldratt, I discovered the ideal “capacity” to work at is 72% - the rationale is that for every 1% over 50% it’s actually worth 2% of your capacity because it moves you closer to being full and doesn’t allow for emergencies or problems.

So, 72% is actually more like being 94% full (i.e. 50% + 22% + 22%).

When you operate at 72% it means you have capacity to infill appointments which stimulates cash flow.

Since I discovered this I’ve started encouraging my clients to REDUCE their capacity down to 72% which has INCREASED their profitability with far fewer problems.

We do this at the same time as a fairly significant price increase (like this post if you’ve already put your prices UP) of at least 30%.

Plus we are also looking for more committed clients, ones who are happy to commit to payment plans, subscriptions and memberships.

The results are quite remarkable.

Who would not want a business which produces double the net profit but with half the number of required clients, right?

Yes, you read that right:

Double the net profit with half the clients.

Who here is working to full capacity but not achieving their full earnings potential*?

Pop you answer in the COMMENTS below.

Stay Fearless!

- Robin

P.S. - * swap out the word "potential" for "dream income"!!!

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