Pricing Methods And Strategies.
I am often asked about pricing methods and strategies, here’s a simple piece of advice to start the discussion: never compete on price, is always my advice, always consider value as there will always be somebody out there who will do it cheaper than you and you do not want to be a busy fool. So how do I go about pricing a product or service and compete on things other than price?
The most important things to work on with pricing strategy, with any sales and marketing activity, is to create a compelling case for somebody to purchase what you offer and they will do this on an emotional level, therefore based on the value proposition which is a far more powerful persuasion technique, it’s not just about USPs (Unique Selling Propositions) because being unique is not the route to success either, it just helps.
Pitching and presenting in any format with value in mind, is a superior technique to offer your products and services with so you highlight the benefits, not the features and also focus on the customers needs.
As people make decisions price will obviously be a consideration, but there is an automatic assumption that a higher priced product is better than a lower priced one and it doesn’t matter if you sell cars or show, holidays or print this is true; so take advantage of this.
Just consider this, if you have a goal to sell £100,000 worth of product, the effort you put in to your sales and marketing for a product at £50 will be only slightly less than to sell a similar product at £500 if you use the value sales and marketing format, so to reach your goal would you rather have to make 1,000 or 200 sales?
In simple terms too, if you are using paid for traffic generating methods, you can afford to invest more in a sale worth £500 and also offer greater value to the customer so it’s a win-win situation.
The simple rule is to offer incredible value to your customers, whatever the price and be please with every sale because it makes you money.
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