Are your products priced correctly ?
One of the BIGGEST mistakes that I see in online marketing is people undercutting each other. It’s something that I have always hated and gone to great lengths to test.
My husband came home last week with our new vacuum cleaner. He proudly placed it on the floor and said that he had got a great deal on this new super vacuum and we should have gone to this local shop in the first place (we have a long history of our last two vacuums breaking down).
I looked at it and then thought it looked very similar to one that we had looked at on eBay. It was the EXACT SAME vacuum but almost £75 ($120) cheaper!
Now I know that you expect to get a good deal on eBay but it’s been my experience over the last few years the ‘deals’ have become few and far between, especially on electrical items. A few more minutes of research and it seems that my partner had paid well OVER the odds on our brand new vacuum. Even after I showed him everything he still felt that he had got a bargain.
Because the sales guy had taken the vacuum from the box and shown him the extra long hose for vacuuming the stairs without having to haul the vacuum with you. He’d then gone on to show him the ‘wonderful’ extra long cable meaning that you can vacuum the whole of the upstairs/downstairs without having to unplug it for each room. Even more marvelous was the fact that this super-vacuum had a terrific ‘turbo’ nozzle that made pet hair a breeze!
So what had made my husband pay more for the exact same vacuum that he hadn’t shown much interest in before and still feel good about it? He had been sold the benefits. The sales guy had taken the time to find out what the common problems were that people faced and then address them and sold the benefits and solutions – NOT the vacuum itself. This is NOT an uncommon occurrence.
People the world over will SAY that they buy on price, this is actually not true. People buy benefits and solutions and if you can master this you’ll quickly build a massive online business that brings you in instant cash on autopilot.
4 Rules to Price your Product RightWhen we start to drop prices to undercut other sellers, the ONLY thing that we accomplish is devaluation of that product.
I’m not saying that we should overprice products but charging a realistic price for your work is not something that you should shy away from. With the method that we are working on here our aim is to quickly create campaigns that bring in instant cash. They should be fairly priced to reflect this but not undervalued.
1. Notice that consumers will vary from others.
A neighborhood bike shop is valued by some people, while others may have not a problem going for a bike off-the-rack at Walmart. What you cost becomes a question of what kind of clients you want to attract and who you truly want to contend with. The smart move is placed your charges for a specific number of potential prospects, in the place of them all.
2. Understand your competition and their pricing patterns.
This is often an uncomfortable question to ask a person, however it is useful to ask, “If you were not using the services of me, who’d you visit?”. How may be the opposition different, and how do your visitors value what’s different? Get ready for surprises when you start discovering your actual rivals, and the advantages your competition might have over you. Youare learning material you did not understand.
3. Pay attention to your visitors and customers.
You actually do not need certainly to hire a marketing research firm to comprehend how your visitors benefit your items versus opponents. Just take a moment to ask clients questions and really hear, versus just attempting to close a sale. This can be a great sales strategy anyway.
4. Be fair and honest in oneself-analysis. Raw honesty
It is extremely difficult for individuals to complete this step. I usually discover that business professionals and owners may overvalue the strengths of the business, and disregard the benefits their rivals have over them. Returning to the bike shop instance, the dog owner may very benefit the store provides Continental tires — due to the fact one customer per month before was pleased they certainly were in-stock. At the same time frame, the competition across town includes a bicycle guru handling repairs, something consumers are prepared to pay extra for. Basically getting exactly what the competition costs will skip the mark.
If you’re a business owner or entrepreneur who wants to reach more customers and see an increase of profits with your knowledge or expertise, you can take advantage of a Free Consultation with me so I can get you there. Give me some information about you and your business and we’ll schedule you for your training call to see how we can help you.