Dear International Friend,
Always Test Your Product or Service.
Whatever business you have, no matter how new or small, you can always improve it with testing. This applies to investors as well. Let me give you an example. I recently started in the rose business. Now I continually order flowers from my supplier and from competitors, looking for weakness in mine and looking for strengths and competitive advantages as well.
If I were going to buy shares in a company, I would do the same. Sure we want to look at price earnings, profits, technical positions of the stock, value versus market capital value etc. Yet how often do we go down and buy the product and compare it with a competitor's? This will tell you so much more than all the stuff you can learn from a stock- broker. Look at quality, price and delivery. Make sure businesses you invest in have a clear competitive edge!
If you have a business, test all the time to gain knowledge about how you can serve better and make more profit.
Here is an example of how business tests can bring really surprising (and profitable) results.
I had discovered that there were many people who wanted to learn more about international investing. So I created a 144 page report which I sold very successfully for $29. One of my tests was designed to see if that $29 price was the best introductory price I could use.
I wondered if the market would believe more in the product at a higher price. So I tested my sales story (using direct mail to two lists of newsletter subscribers) at two prices, $29 and $49.
The test was conducted by mail 10,000 letters that were identical, except in one way. Half the letters offered the report at $49 and half offered the three reports at $29.
I added one other feature. On the last page of the marketing piece, I added one paragraph that offered my WORLD REPORTS newsletter for $99 and gave away the three reports. This extra paragraph and the test gave me some interesting information not to mention increased profits.
Look at the results from two lists (5,000 each list) at the $29 and $49 price.
List Price Number Total $99 $29 or $49 Total
Sales Mailed Costs Sales Sales
List #1 $29 2,500 $1,250 22 34 $3,164
List #1 $49 2,500 $1,250 21 40 $4,989
List #2 $29 2,500 $1,250 24 22 $2,845
List #2 $49 2,500 $1,250 13 25 $3,112
What I learned from these tests was that those lists of readers were as willing to spend $49 as $29, but more important, those who read the $49 marketing piece were far more likely to upgrade to the $99 price. I deduced three facts from this (which I am continue to test). First, the particular lists I chose were willing to send larger amounts of money than $49. Second, $49 is a much stronger inducement for a $99 sale than $29. Third, lowering the offering price by $20 will not attract many more sales. It will reduce income.
I also learned that list #1 is better than list number #2.
I have since seen evidence that $79 works even better than $49 and continue to test this whole idea in detail.
In the end, this piece not only became an attractive marketing piece for getting new customers but has become a good income earner for me as well.
To me a test should still be a valid marketing piece that is aimed at making money. In this case, my total “at risk money” was about $5,000. My return was $14,110 or 182% (in about 6 weeks though 80% came in over the first three weeks). If I can mail this package once a month and continue to earn at this rate, I earn 2,184% per annum on my capital at risk!
How often can you find this type of profit opportunity in the stock market?
This does not mean that every sales effort will create this type of profit, but shows the potential of having your own business and the importance of testing!
This excerpt is from my correspondence course International Business Made EZ which you can order in printed form for $149 or download it from my website for $99. To learn more or order go to https://www.garyascott.com/publications/22/
Here is information about my upcoming course for those who want to have their own business. https://www.garyascott.com/courses/
Turn Your Passion into Profit Now!
The theme of our course is to Turn Your Passion into Profit. Life is too short to waste it doing things we do not love just for the cash. The purpose of this course is to help you plan to do what you love and figure out how to make money from it. The message below recently received from a reader who is in the process of losing a loved one to cancer wrote this touching message gives us a deeper insight into this important thought.
“Gary and Merri, thank you so much. I really appreciate your help and good thoughts. We don't really know where to turn but are in fair spirits just the same. My three brothers are here and we are finding strength in being together. I think we are all still in denial that this is happening but one day at a time…thanks again, I will keep you posted on our progress.
Be sure to tell people at your seminars that not only should they do what they have a passion for but they should do it sooner rather than later!”
This has been a hard week in that every single day we received news of losing a dear friend some place in the world. At times like this we are reminded that there is no lease on life. Take every day as a precious gift and enjoy it to the full.
Wish you joy from service through business around the world, Merri and I send our best!