The secrets of advertising: How should I price my products?
March 20, 2016
By Jerry Bellune
Most of us want to know our competitors’ prices.
We should. It’s valuable information to have.
But don’t let it fool you. It has little to do with value.
If we let competitors set your prices, what happens?
We can be caught in a price spiral that can hurt us.
We don’t want to compete with Walmart and Target.
They can sell at retail for what we pay wholesale.
Their greater volume allows them to gain such power.
Small businesses can’t make such demand of suppliers.
It is best to ask: What’s my value to my Ideal Buyer?
Are my buyers price sensitive? What can they afford?
Do they want a relationship or just a bargain?
Do I want buyers who seek the value I offer?
Or am I content to attract only bargain hunters?
Will a small discount gain me additional buyers?
Or will it only cut into my profitability?
Will my Ideal Buyers ignore small prices increases?
Is so, won’t this help me increase my profit margin?
How often can I raise prices to meet increased costs?
Should I offer discounts to my most loyal buyers?
Will this bring them back to buy more from me?
Or should I offer extra value to maintain full price?
Will extra value be enough to satisfy them?
Will a higher price suggest the higher value I offer?
Should I offer packaged options to build value?
A Silver Offer may be designed for the less affluent.
A Gold Offer would have extra value at a higher price.
A Diamond Offer has top value at your top prices.
We find we sell more Gold than Silver.
We sell less Diamond Offers but at a greater profit.
Much if this is like courtship and marriage.
We romance them until they buy.
Then we offer them a truly memorable experience.
This gets them down the aisle and to the altar.
Want to find out how to do this?
“Romance Your Ideal Prospects” will help you.
Email me at [email protected]
I’ll send you a free copy with my compliments.
Next: How should I market to them?
Want to share this with a friend? Be my guest.
We only ask that you tell them where it came from.
Invite them to send me their email address.
They can reach me at [email protected]
I’ll email this strategy letter to them each week.
©2016 The Bellune Company, Inc.
Neither MidlandsBiz.com nor The Bellune Company, Inc. makes any warranty as to the results that may be achieved from using this information. ©2015 The Bellune Company, Inc. All rights reserved. Requests for permission to reprint or circulate may be obtained by emailing [email protected]
