| |
| |
|
Online Advertising |
Guaranteed Targeted Website Visitors from just $0.45 per 1000. 24 Hour Unique Visitors, Online Stats, 30 Day Guaranteed. We offer Country Targeted or Mainstream Traffic at wholesale cost.: CLICK HERE |  |
|
|
Why Doubling Your Fees Can Increase Business: How Pricing Affects Buyers Decision Making Process
Want to know the simple way to get all the business you could ever handle? Charge almost nothing. That's the approach employed by busy fools anyway. Are you a busy fool? Here's a test... If nobody has ever complained about your price then you probably are. High Prices Are A Sign of High Value... This absolutely defies logic but we nearly all fall for it. If everyone else charges an average of £50/hour and you decide to price yourself at £100/hour what would happen? The last time you chose a piece of hardware (DVD Player, Washing Machine, TV) how did you evaluate which product was the best and which one wasn't? Does an expensive branded perfume cost so much because it smells infinitely better than the cheaper alternatives? Is a diamond really that much better than crystal at making jewellery look shiny? Which came first? Prestige Brand or High Price? When buying, we nearly all make the assumption that higher price means better quality, nearly all of the time. Humans often make lazy decisions based on assumptions. We have to make so many decisions each day that if we didn't create strategies and shortcuts then we'd die before achieving very much. There are exceptions to this but generally (and within reason) the rule applies more times than not. A Glass Ceiling If you set your prices too low, then you've created an artificial limit for your own ability to provide high quality services and make good money without working harder than is necessary. Low price typically begets low quality. High price typically begets high quality. It's very easy to lower a high price when we get it wrong, but ask anyone who's ever done the opposite and they'll tell you that going the other way is nigh on impossible. Increasing Price Can Increase Customers... Most people think this is outrageous. But it's actually true. In his book, Selling The Invisible, Harry Beckwith tells a story about how increasing price can sometimes sell something that previously wouldn't budge. I'll retell it quickly here... The owner of a Native American Jewellery store in Arizona was getting increasingly frustrated at her failed attempts to sell some turquoise jewellery. She'd tried sales and also encouraged her staff to push the jewellery but nothing seemed to work. One day, she had to go on a trip. Before she set off she scribbled a note to one of her salespeople. Everything in this display case, price X 1/2. When she returned everything was sold. She initially thought her plan to cut the price by half had worked. That was until she discovered the real reason. The salesperson who found the note had misread it as price X 2 and so doubled the price of everything. Logical pricing that seems to you to be fair, can sometimes actually make you look mediocre or cheap. How Do You Know Their Price Is Right? Most people set their price based upon the competition. They look at the high/low extremes and in many cases plant themselves somewhere in the middle based on their view of how they measure up. The price you set though is sending another message. It's telling your prospective customers how good you think you are. Average price means you think you're average. Not very compelling. Always, always aim to be the most expensive. You'll have an instant differentiator, higher earning potential and increased profits. Premium Price If you can steal a lead and command a high price early on in a niche or sector then you'll own the word prestige. This happened not too long ago in the NLP Training Market. An explosion of training providers began to spring up quickly in the UK and most firms set their price using their competition and other training firms as a guide. Before these firms knew it, they were all averagely priced, perceived as average and actually realised that they had to sell a lot of training to make their costs turn a reasonable profit. Another training provider, however, set their price at approximately double the average. Not only did they find it easy to gain new customers. These customers, who spent double that of their peers for the same qualification needed to justify their expenditure and so told everyone how much better their training was. Soon the seed was planted; the high priced firm gained a reputation (through word of mouth of its customers) as one of the most distinguished providers in the UK. Whether this firm is the best or not is irrelevant, because plenty of people believe it and are happy to pay a premium to say they've trained there. Think Value Not Components Let's say my hourly rate is £2500. If you're a consultant or trainer then you're probably thinking, "£2500 per hour? No chance! I'd have to do 5 days work for that much money." If you're a successful professional speaker then you might be thinking, "That's about right." Now let's just imagine... I know the secret formula for making a £ million in 24 hours and I'm willing to share it with you for just £2500. Would you say that's a pretty good deal? Would you grumble about paying me £2500 for 1 hour's work if my advice worked for you? You'd probably have happily paid far more than this. Depending on people's situations or problems, they will put enormous value on your ability to deliver a solution or desirable benefit. If you can truly provide something valuable that people need and want then command a fitting reward. Don't be tied to the notion that quantity is more valuable than the outcome because it's not. A Warning I'm not suggesting you should immediately, upon reading this, double your prices. Of course there are other factors to consider. * The market may not be able to stand nor afford a price that is too far above the norm. Getting it too far wrong could mean zero customers. * You may not be providing value for money if your price is escalated beyond your ability to deliver. If you believe this is important (and I hope you do) then you'll feel like a trickster. * You may be regulated in some way preventing such creative pricing strategies. Industry Watchdogs and consumer groups like to create this type of pressure for their own benefit. If you're regulated then price will rarely be your differentiator. I couldn't possibly give you firm advice on pricing based upon the format of this ezine and would urge you to test carefully and make your own well-calculated decisions on the risks and rewards. Also, if we were discussing commodities here then most of the pricing ideas I'm sharing just wouldn't work. The fact is you're usually not (or should not be) offering a commodity. You're unique, you're solving a prospect's problem in a unique way and you're communicating this in a unique way. Consider charging more - I'm sure you're worth it! 'Dangerous' Debbie Jenkins (c) Copyright 2005 www.BookShaker.com SUMMER CAN BE SLOW FOR BUSINESS I'm wondering if... You Know Other People who should be reading this too? So do us all a favour (they get 2 free books - we get a new subscriber - you get to look good) when you Pass On This link... http://www.leanmarketing.co.uk
MORE RESOURCES:
|
|
|
|
RELATED ARTICLES
Are We There Yet? Small business marketing is not like taking a family vacation.Did anybody take a family vacation this summer? Do you have children of your own, or do you remember what it was like when you were a kid taking a trip somewhere?I can still remember the family vacations as a youngster growing up. What You Must Know When Marketing Your Business Marketing is both an art and a science. Anyone who says differently probably isn't doing very well marketing his or her business. Package Your Products for Thunder Thigh Women - Big Butts Too Wake up women (and you men too). I think we are seeing light at the end of the tunnel. Gift Cards - Is It Time to Use Them for My Business? You're probably thinking, here we go again somebody is trying to sell me something that I really don't need. I'm sure it will benefit them, but will it benefit me? Firstly let me say that my company, Solutions Ink does sell gift and loyalty cards. Always Sell To New Eyes And New Ears One of the hardest things for you to do as an advertiser to do is to step into your prospect's shoes and really understand what makes him buy, and to find out how the prospect reacts to your marketing and advertising efforts. It's easy to get caught up in thinking that just because you spent $14,000 -- or $140,000 -- on your latest batch of ads that every person on Earth saw the ads and paid really close attention to them. How to Leverage Your Most Powerful Marketing Tool Second in a series of three articles:What if you could reach thousands of prospects, build fruitful, pro-active relationships with them, and stay top-of-mind with them on a regular basis?and not spend a fortune in the process?If this sounds too good to be true, then you've not mastered the art of leveraging your firm's online strategy. A web site is one of the most unique and powerful marketing tools you have, if you develop and use it correctly. Profitable Marketing Programs (Part 1) Deciding whether a particular marketing program is profitable to your business is often more subjective than the accountants would have you believe. You should not only consider the direct revenue and costs associated with a marketing program, but you should also think about the long term impact on your business. How To Make More Money The biggest crime in small businesses today goes unnoticed by most outsiders. It is not reported in the media. Improving Lead Generating and Conversation Rates: Think Like a Farmer John's a freelance photographer in Ohio who called to tell me of his frustration with the advertising and promotional campaigns he has tried in the last couple of years. Each time he does a promotional mailing to his list of 10,000, he is lucky if he gets one or two inquiries. The Power Of A Story If you want your marketing to be effective, you absolutely must connect emotionally with your prospects. And one of the best ways to do that is by telling a story. Getting More From Your Customer We are all customers of one product or another. How is it we always seem to buy or shop from the same place? What is it that these businesses do to keep us coming back and buying from them? A large portion of the selection process that a customer goes through is done through advertising - attracting and reminding customers through promotions. Spring Cleaning: How To Do It In Your Business To Make More Room For Success With the arrival of Spring, I decided to get outside and into my garden. I had neglected to do some basic maintenance during the previous months and wondered if my plants suffered any permanent damage as a result. 7 Great Ways to Market Yourself and Your Business to Help Increase Sales Do you own a business and need ideas on how to market your products or services to your customers? Well, the one thing that every business owner needs to know is that in order to survive, you need customers willing to spend their hard earned money for your products or services. The only way to drive customers to your business is to market yourself and your business in a way that customers believe in you and willing to spend money. Create a Blueprint for Your Success Having a strong foundation enables you to build a thriving, profitable life and business. A simple method to create this foundation is with Discovery, Vision, Planning and Benchmarking, the four cornerstones of your life as well as your business. Small Business Marketing; Abstract Philosophical Discussion Our bodies work like our small businesses. They work best by word of mouth, networks, referrals, etc. Top Five Tips For Designing Marketing Strategies That Get Results "But this won't work" said Steve. "I've tried it in the past and had no response. Marketing to a Critical Mass In "Developing a Marketing Plan", we covered the first steps to developing a marketing plan and tracking where your customers are coming from.The thing that I noticed when I did this for my own business was that the majority of new clients could be attributed to more than one source. Marking Your Territory We all know the familiar adage "if it walks like a duck, quacks like a duck.. Avoid These 5 Web Site Blunders! The Web is intended to help people find information quickly and easily. So why do so many sites make it difficult for users to get what they need? While neat design can add impact to your message, make sure the message itself doesn't get lost in the mix. Mail Can Make You Money Are you still waiting for business to turn around before you start direct mail marketing? Waiting around won't get you any business. The time to start is now.
|
| home | site map | bad credit loans |
| SUBJECTS: • Advertising • Book Marketing • Domain Names • Email Marketing • Ezine Marketing • Ezine Publishing • Internet Marketing
|