"Your can't compare apples to oranges"
Pricing is one of the biggest issues facing all businesses
and yet most people seem to get it wrong. They simply
haven't got a clue how to set their prices. But the truth
is that having the lowest price is not really an advantage
and having the highest price is not really a disadvantage,
because price is rarely the determinate factor in selling.
Most business owners look at what their competitors are
charging then set their prices a little bit cheaper or bang
in the middle. This is a big mistake because you're leaving
yourself wide open for attack and you're not
differentiating your self from your competitors.
This is a weak approach from business owners who are simply
too scared to increase their prices incase they lose
existing or new customers. Or they're just scared of what
their competitors will think of them. You'll never be truly
successful with that mindset.
If you live by price then you die by price. All it takes is
for one, or all, of your competitors to undercut you and
you're finished.
Once you escape a price competitive environment, via
positioning and guerilla marketing you really can "set your
own price".
MOST ADVICE YOU GET ABOUT DEALING WITH PRICE RESISTANCE IS
WRONG
If you deal with price resistance by arguing in favor of
your better service or higher quality then you'll still
find your sales work difficult. People do want superior
goods and services but they still don't want to pay premium
prices from them. Many business owners fight this battle
every day with their customers unnecessarily.
The secret is to switch the standards of comparison between
you and your competitors. Compare apples to oranges and
throw in the superior quality at no extra cost.
Reinvent your products/services by packaging them up. Add
value, bundle goods and services together, include
delivery, warranties, cast iron guarantees, desirable
bonuses, payment plans, VIP membership clubs. If you offer
a service, throw in some products and if you offer a
product, include a service.
If you have already set your prices for a product or
service which you don't want to change, then fine. Simply
keep the existing product/offer at the current price and
then design 2-3 premium packages, say Silver and Gold.
Give your customers the choice and they will most likely
choose the middle or silver option, if it's appealing
enough. They in effect decide what they are comfortable
with and how much they are willing to give you. This is one
of the most powerful sales tactics I know of.
Always offer the Premium Gold package first and all the
other packages will seem cheaper. If you want to sell more
of your Gold packages then introduce a Gold Plus option,
and so on.
Remember some sales tactics have worked for thousands of
years and still work today.
'The 'Widget' normally costs $199 but you can have it today
for just $99' etc. Ok, your customers aren't stupid and
neither are we.
We can all see through these simple tactics, but guess
what? They WORK. We all still love to think that we got a
bargain then run home and tell everyone about it.
Savvy business owners and marketers learn to change the
rules of the game and set their own prices based on how
much they want. It's got nothing to do with what your
competitors are charging. Forget about playing fair, it's
time to change the rules to suit you and your business.
All your life you've been conditioned to play fair and that
subconscious conditioning is holding you back.
Beating your competitors is all about finding or inventing
an unfair advantage for yourself. Go ahead and make price
comparison impossible for your customers and make it
impossible for your competitors to keep up with you.
----------------------------------------------------
Jimmy Krangol is becoming quite a buzz in the marketing
world. You can sign up to Jimmy's Free 7 day marketing
course "How You Can Make £4,297 Per Day Sitting at
Your Computer In Your Underwear" at
http://www.topsecretmarketing.com
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