No matter what you're selling, whether it's a training course or a marketing seminar or a physical product, you've probably spent a long time agonizing over price. Sellers almost always spend more time than they need to thinking about and setting a price. In reality, sellers think price is a lot more important than it actually is. The next time you're pricing a product, keep these things in mind.
Price Isn't as Important as You Think
Sellers almost always spend far too much time thinking about the price of a product. They agonize over whether they've priced their product appropriately for their market. In most cases, sellers actually under-price their products. When I work with people one-on-one, I almost always find that sellers are charging too little for what they're offering. I spent a lot of time telling people to raise their prices.
While sellers may think that price is the most important aspect of marketing an event, that's simply not the case. Research has shown that less than 10% of buyers are actually influenced by price as a primary factor when they make a decision. Realistically, it isn't the price that matters, but how well you market the event.
Present Your Price Effectively
Many sellers think that if they price a product low enough, it will virtually sell itself. Sellers think that low prices are easy to justify in consumer minds, so consumers will want to take advantage of the low product and make the decision to buy or register. In reality, it isn't the price that influences peoples' decisions to buy; but rather, how well you present that price. If you don't present your price effectively, the sale is over before it's begun.
Beware of Sticker Shock
Sticker shock is a phenomenon that occurs when people present their prices too early. You don't start off a presentation by telling people how much something costs, because then they're fixated on that price. If they feel that the price is high, they'll stop listening to whatever you have to say, and you've lost the sale. Instead, present the price toward the end of the sales presentation.
Build Your Product Value
To effectively sell your product, you must establish your product's value. You must spend time showing your potential buyers why your product is a must-have product. Explain what they get from buying your product. Show them how your product solves a problem they just can't seem to resolve, or how it does so better than anyone else's product. Once you've established that your product has value, you can present the price of your product; after your buyer is convinced enough of your product's value to listen to your value proposition.
In Summary … Charge More, and Present Your Price at the Right Time
Don't undercharge for your product. A low price won't sell your product – good sales copy will sell your product. Price your product appropriately, and spend time establishing the value of your product before you reveal the price to your sale prospects. With the right value proposition techniques, you can increase your conversion rate and let your product sell itself!
Bernadette Doyle specializes in helping entrepreneurs attract a steady stream of ideal clients. If you want to get clients calling you instead of you calling them, sign up for her free weekly e-zine at http://www.clientmagnets.comTweet