A few years ago, I suggested to my sister, who is a very
good artist, that if she raised her prices on her pieces
that she would sell more, and with the higher price, make
much more for the same amount of effort. Her first reaction
was that she didn't want to price herself "out of her
market."
A year went by, and every time I saw her, I'd suggest she
raise her prices. Finally, after encouragement from many
others, she relented and doubled her price. Almost
immediately, she began to sell more.
Two years later, she now sells her work for triple what she
once charged and has a list of commissions waiting for her
to get to. She has not changed her marketing or increased
her exposure. She simply made her artwork "reassuredly"
expensive so that her market feels they are getting value
for their money.
Pricing is an important component of the success
phenomenon, although many business people have no idea how
to approach this piece of the puzzle. It's taking three
things into account:
1. Your perception of your product's value 2. How much
effort you want to expend 3. The buyer's perceived value
Let's look at your perception first. On occasion, a
business will price their goods too high, often because
they have fallen in love with what they're selling and
believe everyone in the world will feel the same way.
However, more often, the product or service is priced too
low. One reason for this is due to a perception of
scarcity: the person setting the price feels that they
would not spend that much on the product and wonders if
others would feel the same way. Whether the price is set
too high or too low, both are matters of personal
perception.
Now let's look at effort. If you are putting the same
amount of effort and money into the marketing and selling
of your product, having a price that reflects its true
value to the buyer will bring back a higher return on
investment. This is a simple concept, but one that's
difficult to implement if your own perception of the
product's value is not in alignment with a higher price.
So how do you set your price? Here are five things to
factor into your pricing:
1. Examine your beliefs about the value of your product; if
you question how much you would spend, is this a product
you want to spend your money and energy promoting?
2. If you feel good about the product, decide how much you
want to make.
3. Decide how many hours you want to work.
4. Raise your fees to match what you want to make in the
time you want to work.
5. Look at others in your market who are having success
selling and marketing a similar product or service to
determine if you are in alignment with your market.
Finally, there is the perceived value of the consumer. If
the price is too low, the buyer might feel the product or
service has limited value and will be hesitant to buy. On
the other hand, when you have built trust with the buyer,
when they feel they will be getting their money's worth,
price becomes less of a factor in their decision, and they
will be willing to pay more because they know they will get
value for their investment.
The bottom line is that you can increase YOUR bottom line
significantly by pricing correctly, and you will move ever
closer to the Success Phenomenon.
Copyright 2007 © Marilyn Schwader
----------------------------------------------------
Getting your information from concept to marketplace? Visit
author/coach Marilyn Schwader at
http://www.clarityofvision.com . Looking for an accelerated
information products education in an affordable,
easy-to-use format? Go to
http://www.jumpstartyourwealth.com .
No comments:
Post a Comment