November 18, 2017

Do This Rather Than Lower Your Prices

This past weekend, I had a chance to chat with a family member who runs a computer repair business. What was interesting is that his primary marketing model was that he charges less for what he does than the competition.

This is a very common practice in that a business owner will “think” that by charging less than the competition, they are “marketing.”

We know, after decades of research on the topic, that people don’t buy on price alone and in fact, price figures into their buying decision less than 5% of the time!

So if dropping your prices is your only marketing strategy, you’re missing the point of marketing.

Here are a few suggestions that you might want to consider instead of simply putting things on sale:

1) Add Value: Rather than lower your price, add items to your offer that boost its VALUE. You could add some digital content (e-books, reports, audio, and/or video) to your offering. If you’re a service business, you could add some additional time onto your service, or offer to do something more than you usually do. Think of the hair stylist who also gives you a little head massage before getting into your hair!

2) Show Them What Else it Can Do: In other words, you may want to paint an even bigger/brighter picture of what owning what you’re selling will do for your customer.

Think of the infomercials that sell steak knives and they show you what other things you can do with their steak knives. Maybe you can cut watermelon, tomatoes, bread, etc. You get the idea.

3) Take Them Farther Down the Path: Instead of just being focused on what your customer will gain in the immediate term, let them know what buying your product or service will give them in the weeks, months, and even years ahead.

For instance, if I were to sell you a marketing training program, I would mention that once you learn what I have to share with you, you’ll have those skills to use as much as you’d like for the rest of your career. Then I might ask, what is that worth to you?

4) Make the Price Disappear: Yup, you MUST make the price disappear in the minds of your customers. If cannot become the reason why they choose not to buy from you.

In the case of my family member who fixes computers, I asked him what it was worth to a company that had valuable data locked up in a failed computer if he were able to recover that data for them?

His answer told a very different story about what he could be charging his clients because lost data can represent tens of thousands of dollars in lost productivity for a company. In that light whatever his price was would be seen as a bargain by a company with that issue.

Here is my advice for you.

Only lower your prices if everything you’ve tried has failed to work for you. In other words, dropping your price is a last ditch effort and should only be used to avoid closing the doors of your business, and should never be used as standard practice in your marketing.

Be Outstanding!
Robert Imbriale
 

 

Incentive Marketing Makes Money

Did you know that it’s simply not possible to build your business on your own?

Did you know that every business that becomes something of a success got that way, not because of one person doing it all, but because one person inspired a team and together they created a successful business.

The question for most of us in business, is just how do you go about building your team?

How do you get people to help you build your business?

Why would somebody want to help you?

And how do you incentives them to step up to the plate and put some real effort into helping to build your business?

There are a few stages of business growth and at each stage, the formula for attracting the help you need is going to be different.

In the mid 1990’s when a little start up with an odd name called Amazon.com got underway, they knew they needed to reach out to a lot of people, but that they didn’t have the resources to do much about it.

Never to be deterred, the founder, Jeff Bezos, literally invented the affiliate program. By incentivizing their customers to refer others to their web site, they created what would become an industry leading company in just a few short years.

In the earliest phases of your business, you can and should borrow this model and find as many ways as possible to offer incentives to people, businesses, and list owners that are different from the everyday.

For instance, most people who write to me make essentially the same offer. They say in effect, “promote my widget to your list and I’ll share a small percentage of the sales you generate with you.”

Can you see why I’m simply not excited by this kind of offer? Not only are they common, they completely fail to take into account the fact that there is real work and real risk involved in sending anything to a list I’ve worked really hard to build.

If you were to think outside of the box, you might make a better offer and get much better results too. What if you could offer a list owner a full 100% of the sales they generate for you on a front-end offer, and then you could keep 100% of any and all back-end offers and upsells?

I would respond to that kind of offer and so would many other list owners too.

What if you made that offer to past customers of yours? I’ll bet many of them would jump at the chance to tell their friends, especially if they have had a great experience with your company.

The idea that I want you to take away from this is simply that if you want bigger success, you’ve got to do things that other people are either unwilling or unable to do.

Thinking up new an innovative ways to interest people in promoting your web site, your offers, your products is what separates those that struggle from those that get to live the good life.

A great question to start asking right now is, “What would it take in order for you, Mr. Listowner, to jump at the chance to tell your list about my products?”

If you don’t know the answer, start asking some list owners, business owners, friends, and business associates for some ideas. And always, always, always be on the lookout for offers that catch your attention so that you can borrow those ideas to use in your own business too.

Personally, I watch companies like Amazon.com because they always seem to be coming up with many new an innovative ways to get more people to their web site.

And, I have borrowed many of their ideas and used them with my own business and those of many of my clients as well.

Now, go ahead and come up with something that you feel confident you can do to build your business and feel free to share it with me, if you want some honest feedback.

 

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