Skip to main content

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

Popular posts from this blog

Fix The Problem

Fighting a problem does not require us to fight other people. We don't need to agitate when we can collaborate. Fix the problem (which is likely caused by flaws in the process, design, or environment) and the people will be fine. -- doug smith  

To Be The Best

You could rely on luck. You could depend on inheritance. Maybe you could fake it until you make it. All of those courses of action are unreliable. As an old friend used to say about buying lottery tickets: "It's for people who think that the answer is outside of themselves." To be the best work harder than the rest. That's the only secret formula you need. -- doug smith  

Build The Right Connections

Build the connections that strengthen your team and release the ones that tether your team to trouble. What we hold tight might not be what we need now. Deliberate connection just might take your full attention. -- doug smith  

To Be Noble...

Goals have the power to change us, to form us, to set us up for success -- or less. But, they should serve more than your own intentions. Great goals also serve others. Make sure that your goals are noble because they will direct your behavior. And, you do want to be considered noble, don't you? -- doug smith  

Misunderstood

  It's frustrating to be misunderstood. It is well worth working on our communication skills in order to minimize misunderstandings because they lead to hardships and hard feelings.  But, do you know some one who just seems to always misunderstand your message, or your intention? It's almost as if they are missing the point on purpose. They probably are not -- there's just some filter in the way. Some people will misunderstand you no matter how clearly you speak. Reframe, rephrase, re-try...it's not worth letting the misunderstanding stand. -- doug smith

Keep your choices open

Have you ever felt like a prisoner to your own emotions? The feelings can be so strong that they flood your being with an almost paralysis. I have found myself wandering away from a situation because my emotions were pushing so hard, even though a better choice would have been to stay, get those emotions under control, breathe, and choose. Once a bad emotion has sent you its warning, it's best to send it on its way. Emotions can drive us, but don't need to. Feel it, pause, and step away. Keep all of your choices open. -- doug smith

It's About The Cause

The art of leadership is keeping the ego out of the play. It's not about you. It's never about you. As a leader, it's about the cause. -- doug smith  

No Crystal Ball

  "My crystal ball is broken and all the snow has dried up..." says my friend Linda whenever someone expects her to read their mind or tell the future. The information is not available. We can spend a lot of time looking for shortcuts. What passes for an insight could be instead a slight. With all the tools and software we have available we still do not have workable crystal balls.  My job might be easier if I had a crystal ball, but if I did have a crystal ball then I wouldn't be needed. Worth considering? Let's not fear the future. Let's do the work that's right in front of us while keeping sight of our mission. -- doug smith

Leveraging Shared Problems

As frustrating as it is, some people don't care about your problem until you make it their problem, too. But you don't have to manipulate them into it. Talk about it. Share your concerns. Find the connections and you'll also find their investment. Once they are in, collaboration is far more likely. -- doug smith  

Gain That Personal Input

Do you like it when other people make decisions for you? Me, either -- and neither do the people on your team. That's all the more true about decisions that become, or feel like, rules. Our inner rebel will rise. A rule we didn't make seems much easier to break.  If you want your team to keep certain rules, first find out how they feel about those rules. -- doug smith