This post is part of the 📖 1-Page Marketing Plan series.
Today, I am reading the section Pricing Strategy from SALES CONVERSION chapter of the book The 1-Page Marketing Plan written by Author, serial entrepreneur and rebellious marketer Allan Dib.
Yesterday, I read some sections of Manufacturing Trust chapter of the book.
Tomorrow, I am going to read a section The Ultra-High-Ticket Item from the SALES CONVERSION chapter of the book. Look out for tomorrow’s article.
Pricing Strategy
The price of your product is a critical positioning indicator.
As discussed earlier in this chapter, if you position yourself as an educator and a trusted advisor, price becomes much more flexible.
Number of Options Regardless of industry, most products or services offer multiple flavours or variants of the primary offering.
Example: Henry Ford famously offered his customers the Model T “in any colour that he wants so long as it is black.”
Conventional wisdom would have you believe that the more choice you offer, the more sales you will make. However, this has been proven wrong time and time again.
The author cited a famous study by a professor of business at Columbia University that illustrates this point well.
Reverse Risk with “Unlimited”
Most people are extremely risk-averse. If you can remove this risk for them, you significantly increase the opportunity for a sale. An excellent strategy for removing this risk is to offer an “unlimited” variation of your product or service at a fixed price.
For example, an IT company could offer “unlimited” technical support for a fixed monthly fee or restaurant offering “unlimited” beverage refills and so on.
Do you know you can listen to this book on Amazon Audible for FREE?
If you are not into reading like me, then you can listen to this book for FREE on Amazon Audible
Don't Read. Just 🎧Key Takeaways
Offering too much choice can actually prevent sales.
Looking at your average transaction value over time and working with the law of averages can give you a very accurate idea of what it will cost you to offer an unlimited option.
Summary
Too much choice can hurt sales. When they have plenty of choices, then people get caught like a deer in the headlights. Fear of making a suboptimal choice prevents them from making any choice at all.
In this groundbreaking new book you’ll discover:
How to get new customers, clients or patients and how to make more profit from existing ones.
Why “big business” style marketing could kill your business and strategies that actually work for small and medium-sized businesses.
How to close sales without being pushy, needy, or obnoxious while turning the tables and having prospects begging you to take their money.
A simple step-by-step process for creating your own personalized marketing plan that is literally one page. Simply follow along and fill in each of the nine squares that make up your own 1-Page Marketing Plan.
How to annihilate competitors and make yourself the only logical choice.
How to get amazing results on a small budget using the secrets of direct response marketing.
How to charge high prices for your products and services and have customers actually thank you for it.
Author(s): Allan Dib
Part 24 of 36 in the 📖 1-Page Marketing Plan book series.
Series Start | The 1-Page Marketing Plan - Day 23 | The 1-Page Marketing Plan - Day 25