Set the Best Price

Are your products or services priced correctly?

If your sales are slower than you expect, it could be that the price is too high. People will resist prices that they perceive to be too high, sometimes without even knowing it.

Movie theaters can sit empty. Used car lots can sit full. Inventories can create mountains as expectations whither in the wind, products obsolete themselves, and customers take new options.

But is there a price that people will buy?

My son Juan and I went to the movies to see the 4th Pirates of the Caribbean movie. It's an entertaining movie, but having seen the first three and considered the last just a little over-the-top, I could easily have skipped number four. But the theater we attended has a Tuesday night special ticket price of just $5. For a movie, that's good. We'd seen "Thor" a few days earlier and paid a whopping $13 a ticket (it was in 3D). For that showing of "Thor" there were maybe 12 people in the audience. I have to believe the theater lost money that night. But for "Pirates" and its $5 seats the theater was almost full. It looked profitable that night for me, and it was so much more fun to be in a larger audience.

One week Amazon sold the latest Lady Gaga album for just .99. People who might never have bought her music cheerfully downloaded the music. So many, that it crashed the system for a while. While crashing the system is not what leaders are looking for, sales and creating new customers is. Radiohead once let people set their own price -- and they ended selling a ton of downloads of "in rainbows". I remember paying a little less than it would have traditionally cost -- but I DID buy it.

Are your products or services priced correctly? What price point would optimize your number of customers AND profit margins?

-- Doug Smith

Comments

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How many people have tried to sell you stuff today? Six? Sixteen? Sixty-six? It's a lot, isn't it? Some days it feels as if everything is a sales pitch. Buy this, try that, sign-up for freemium but get ready to pay. It's good for you, it's what you need, it will bring you friends and fun. I know, I know, I know. We're all in sales. I sell stuff, too. I do better if people sign up for my courses. I make more money when customers supplement their learning by buying materials from me. I sell, I sell, so who am I to tell? I get so weary of people trying to sell me things that I almost stop selling things myself. But, I do find myself selling less these days. I'm not criticizing sales. I have a son who is an absolute ace at selling insurance and he does very well, and well -- people DO need insurance. It meets a need. But, we don't think about it, we don't address the need, unless someone tells us about it. Unless someone sells us something. How do we make pe

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Start With A Goal

Have you ever solved a problem and then been disappointed by the result? I sure have. The problem was bad, the solution was worse. We need to narrow down our target. We need a focus that allows for surprises and yet creates a solution based on something we really want. After all, it's not the END of something we're working on, it's the existence of something better. High performance leaders create better situations. Be careful about solving a problem until you know what you really want. Start with your goal. -- doug smith

Your Goals Need You To Get Started

If your big goals is really a series of twenty-five little goals, the sooner you get started on those little goals the sooner those goals will add up to that one big goal. -- doug smith

Keep Digging

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Wherever we are...

During a webinar that I was facilitating, one of my participants, David Palmore, quoted a former boss of his and it makes so much sense I just have to share it here: It's a supervisor's job to remove obstacles and excuses. -- Mark Howard It's so easy to find excuses - "they won't listen anyway," "it's above my pay grade," "I'm not good enough for that..." and yet what do excuses ever give you? You don't have to think too long on that because the answer is nothing. Maybe less than nothing because excuses take away opportunity. We're not always fully equipped to do the job we need to do. We often lack resources needed to achieve our biggest goals. People push back and give us second thoughts. There are walls everywhere. But we can climb those walls. We can dig under those walls. We can go around those walls. And, when we need to we can pound thru those walls. No wall is worthy of an excuse, and no excuse is as tough as a wall

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Is it annoying when someone brings you a problem? Sometimes they catch us by surprise. Usually, it's in the middle of something else that's already important. There it is, a problem. We could resist. We could avoid. Or, we could engage. It's up to us. Think of someone who brings you a problem as a new collaborator. -- doug smith

What It Means

Find meaning in this moment. That's where the meaning is. -- doug smith

Keep Moving

Perfection is a direction, not a destination. -- doug smith

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