028 The Invisible Touch – The More It Costs, The Better it Seems

The First Key: Price

As an economics major in college, I was often taught that when we lower the price, we increase the number of people who can afford what we offer.

This MAY be true, but do we also increase the number of people who WANT what we have?

Raising Prices – See How Clients React

Here are two personal examples:

Number 1: As a professional photographer, my prices are high compared to lots of other people in my part of the country.

WHY?

First… because I'm worth it, my quality is terrific, and the end result leaves people with memories they cherish for the rest of their lives.

I create the heirlooms of tomorrow, today. (Think about it!)

One day I decided to offer a larger Album along with the albums I had offered for many months before. I added that album size to my top "package" and then subsequently raised all my other prices as well.

For you see, a wedding or bar mitzvah client who sees my TOP Package understands that I am worth the $12,000 – $15,000 I charge. And even if they don't want everything that I offer in that package and decide to take my SECOND package, they still feel that they are getting a $15,000 photographer who is just providing less to them.

Think about it for a minute: which photographer do YOU feel is better (when all you do is hear the price): the one who charge $876 for a wedding or one that charges $15,000?

Number 2: In my Social Media Marketing Consulting Business, I rarely am available for short-term projects. I base my work on providing solutions to clients and don't want to tackle simple, easily-solved problems: anyone can do that.

Will I GIVE AWAY some free consulting time? Sure. It makes good sense to do that. But can someone hire me for an hour of consulting? No.

Half days or whole days. OR by the project.

And my fees HERE are high as well.

Why?

Because I'm worth it and I deliver great results.

And haven't you heard your entire life: you get what you pay for?

Which consultant seems the better, more knowledgeable, one? The one charging $100 an hour or one that prices his project solutions starting at $10,000?

OK… so YOU might not be able to afford it, but still the perception about higher prices equals better quality is there.

What Should Car Dealers Do In Their Showroom?

Think about your local car dealers.

They should have their fanciest, most-luxurious, most-expensive cars in the showroom. OK, so most people won't purchase them, but when you purchase your 2-cylinder entry-level car it's nice to know that your car manufacturer knows how to make a $157,000 car as well!

When Sales Are Down, Do NOT Think Price: Think Value

What do most people do when sales are down… they think about lowering their prices. They're back in economics class with me, feeling that by lowering the price they will increase their sales.

But what if you looked at increasing your VALUE and keeping your price the same? Offer MORE with your present price, go the extra mile in how you service your clients, show them why you are worth it.

In internet sales, we often add free bonuses. In cars, they often add a feature they normally would charge for (undercoating, CD upgrades, etc). In my consulting, I might add a Twitter campaign to the website campaign I design for my client.

You NEVER want to be known as the low-price winner… that's a losing strategy before you start (Sorry, Mr. Walton… not talking to you about your Walmart chain). But look at all the OTHER low-price champions BEFORE Walmart and see that most of them are OUT of business or really struggling.

You DO want to be the HIGHEST-Priced Winner – it will add to your prestige, how people see you, and to your wallet.

And THAT'S why you're in business in the first place!

Best,

Charlie Seymour Jr
Blogging, Podcasting, Consulting

PS: You can find me here:

http://twitter.com/UltimateWAHDads

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http://www.linkedin.com/in/charlesseymourjr

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Charlie Seymour Jr is an entrepreneurial evangelist and marketing-success coach helping individuals and companies (up to $100MM) explode their success through online and direct-response marketing. He specializes in blogging, podcasting, photography, video, and Facebook applications. Visit his blog at http://bit.ly/24eYTO to learn more about his successes.

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Fallacies of Marketing

028 The Invisible Touch – The More It Costs, The Better it Seems