How Jumping the Lines at Disneyland Could Provide the Innovation You Need to Triple Your Profits

Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth.
Peter F. Drucker

When people think of growth, they usually think in terms of new locations or more products and services to reach more customers. There is nothing wrong with this approach, but this should be the last way you consider growing. The first is to look at your existing market and figure out what else you can sell them. What other product or services are your existing customers willing to buy from you?

If you have ever been to a Disney park in the height of summer, you are in for a long wait at just about every ride, sometimes an hour or more in the dripping heat. But you don’t have to wait in lines anymore. As long as you are willing to pay a substantial extra VIP fee, you can go straight to the front of the line. Not only do you see more, do more, and sweat less, you also can’t help getting that smug sense of satisfaction from looking at the poor people in line who you’ve just usurped with your VIP pass.

Going vertical by offering more to customers you already have is the fastest and most profitable way to build a business. My basic clients pay $295 a month, but I have some who pay $3,000 a month, and every dollar amount in between. By offering add-on services to existing clients, I can double, triple, or even quadruple the amount of money I make without spending a dime to find a new client. It’s very possible you could do exactly the same thing.

Last year, I was able to go into one company in an industry in which I had absolutely no experience and, without adding customers, I increased their revenue by over $1 million in residual income. I simply added two higher price options by offering additional value. While their profit at the base level was $8 a month, at my new higher levels it was $40 and $80 respectively.

From VIP parking to velvet rope seating, from queue jumping to adding value, every business has between 5% and 30% of their customers who will pay more for premium services. You just have to offer it.

Developing premium products or services to offer existing customers is the quickest and easiest way to increase profits.

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