Reducing your price just to compete is a cardinal sin
Once you’re known as cheap, you’re not known as the expert. People are not desperate to do business with non experts. People don’t go on a waiting list for cheap products or services. Worst of all, you’ll attract people who will only do business with you because you are cheap. And once someone cheaper comes along, there will be no loyalty to you or your product/service.
So if you’re struggling to get the sales you want at a price which reflects the value you give, then you need to ensure you get those sales, so people become used to dealing with you at those prices or fees. Then they know that is what you’re worth and will be willing to pay accordingly.
There are penthouses, and upmarket properties in London going for millions of pounds as part of luxury developments. The buyer is getting a beautiful property in an incredibly sought after location (where the difference between being south of the river and north of it can be literally millions of pounds). But as some developers, who built on the wrong side of the river and didn’t realise how hard it would be to find luxury buyers willing to live on the lesser side of the river, found out, is that you might need to be a bit crafty to keep the prices where you want them to be. To keep the reputation of the property in this case, as high as the asking price suggests.
So what do they do? Add more value. Buyers are often given luxury cars, holidays, items, whatever it takes to get them to buy. As long as it’s at, or very close to the asking price.
This is actually a great example of “bundling” whereby by adding products together creates a greater value for the client.
How can you add more value to an existing product or service?
Product creation & Bundling
Amazon is a pricing beomoth, known for having huge range of goods, at generally the lowest prices. If you sell telescopes for £250 then the chances are Amazon sells the same telescope for the same price. Perhaps they’ll sell it for £5 less next week.
So why not create a set of user friendly DVDs on how to best use the telescope, get the results you want, things to look out for and other things that can only really be learnt from asking an expert, rather than simply picking the telescope out of the box and using it.
Your buyer then gets the telescope along with 5 Free DVDs to get amazing results from their telescope, so what they actually get is:
A top quality telescope perfect for beginners wanting the best views of the night skyAnd for Free:
DVD 1: Set up and get using you telescope in under 10 minutes
DVD 2: Use it like a pro, how to get the best views
DVD 3: What to look for & where
DVD 4: The best natural phenomenons over the next 5 years to look out for and the dates to use your telescope
DVD 5: About your telescope (and maybe about upgrades and a discount next time they buy directly from you)
Suddenly if you have a beginner looking at buying the telescope, would they pay £245 for one from Amazon or £250 for yours with the personal guidance and expertise DVD set. The best thing about this is you only have to record the DVDs once. Then it’s done – you never have to do this again unless you want to update them. DVDs are incredibly cheap to produce.
Of course this book is about marketing for mobile, although i’m sure yo’ve gleaned many strategies that can be applied to all business situations already. But why not offer to send them a video to watch each day, straight to their mobile phone if having a physical DVD in their hands is something you don’t think your customers need.
The day they purchase they get access to video 1, then the day after video 2 and so on. They can be simple pages on your website so they can view them online even if not on mobile.
It may even be easier for them to do, rather than finding somewhere to put the DVD into, and will certainly be cheaper for you. Why not give them the choice?
Offering a guarantee for your product or service allows you to avoid competing on price. It could be an effective warranty if you’re selling a product, or a guarantee of a particular result for a service. For example – drop a dress size in under 28 days or your money back, which proved to be particularly useful for a client of mine.
Have a great day and implement! James.
Read to take the next step with your business? Schedule a call with James
Call me back to arrange a suitable time & date