What is marketing mistake #3? Using the wrong pricing model!
What many people don’t know is that your pricing plays a huge part in your marketing message. How is that the case? Tell me this, what are you reading this on? An android phone or an Iphone? A macbook or a chromebook? Why does it matter? If you think about it, all those devices virtually do the same thing in a slightly different way, but the price difference is immense. The answer is that consumers pay for the value in the price. How so?
Imagine you’re in a store or browsing the internet. You get 3 prices for what you want to buy, a high priced product, a medium priced one and the cheapest version. Would you choose the cheapest option? The answer would likely be no. Why? Well many of us assume that the highest price is the best product, lowest is worst and middle is just what we’re looking for and affordable too. We’ve all done it.
Don’t forget that pricing communicates the value of the product or service, so your pricing needs to reflect the value you know you can provide for your prospective customers. Now ask yourself – Am I pricing myself too low, too high, or just right? I would love to discuss with you how to get it just right, but for now I will give you this 1 valuable tip.
Business Tip – Know the difference between discounting and adding value.
If you’re discounting right now. I would suggest you stop it. It can be one of the biggest mistakes in business. Here’s why. Discounting attracts price focused disloyal customers that won’t shop with you again. If you have to discount to get a customer, you have just lost that customer. Not only have you lost a customer but you have also lost profit, because that customer will only come back if you either discount again or you’re the cheapest option again. You will have to continually ‘pay’ to get these price sensitive customers.
What should you do instead? Add value. How do you add value? Use the simple formula of using the word BUY in your messaging. For example “BUY one get one free”. This way, you’re making a sale at full price and adding something of value to your prospects, by providing something else in addition that actually didn’t cost you that much to buy.
Think of it this way – Imagine you’re choosing a new phone contract. Your current phone contract provider is a little bit more expensive than their competitor, but the competitor is throwing in a free device along with the contract. Which one would you go for? Most would choose the one with ‘added value’. They haven’t discounted, you’re still paying the full contract price, however, you are getting added value and they make their desired profit.
So stop discounting and add value. Attract customers that will pay you well and return to you over and over again, by getting your marketing message right through correct pricing. If you’re cheaper than your competitors then it’s usually saying that your competitors are better than you.
Start making yourself more profitable today and get your marketing message right.
If you want to talk to me about how to rev up your marketing and get your business working for you and not the other way around through business coaching click here to book a FREE consultation with me.
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