Poor pricing can cripple your business. Too low, profits go. Too high, sales die. As with terms, this fickle field has many pitfalls. To avoid them, I seek your take on the scenarios below.
Think of it as a game of Scruples, without the vodka and fondue.
A cheap checkout perfume didn’t sell until the supermarket raised its price by 2000%, moved it to the beauty section and put it behind glass.
The perfume was unchanged, but its new handling increased its value in customers’ eyes.
Should we treat our products likewise?
As a kid, I pulled aluminium cans from rubbish bins and sold them to Alcoa (well below spot market rates, I suspect). As an adult, Catholic guilt and middle-class angst made it painful to set my copywriting rate at $120/hour.
My business coach said my clients weren’t buying just an hour of my time. They were buying my talent, reputation, two degrees and 24 years’ experience.
Was he right?
A local pub has put digital price display tags on all its bottle shop products. These are linked to a computer.
On Friday nights, just before work drinks end and revellers hit the bottle shop for take-aways, the computer raises all prices by 15%. Prices revert for sober, Saturday morning shoppers.
Is this damnable (or damned good) pricing practice?
A former financial advisor client was extremely fond of contra deals. Because, he asserted, his professional advice was three times more valuable than mine, he wanted three hours of my life in return for each hour of his.
In a man-to-man context, this stuck in my craw.
Should I put him back on my Christmas card list?
My ebook distils everything I’ve learned (the hard way) about job ad writing. Yet, as a PDF, it’s merely a bag of bytes with no physical substance.
I just doubled its price to $20 (to pay for Google AdWords). Is this the world’s best bargain, or is it a lame joke in light of the billions of free ebooks around?
Your comments on tonight’s fantastic questions will help us discover if the PRICE is RIGHT!!!