“When Do I Bring Up Price?”
Last night I was a guest presenter for the WESST MARKETLink program, a local seminar series for entrepreneurs. The topic was pricing and the group was diverse, from a sand and gravel company owner to an artist who does custom wall finishes.
The artist asks, “When do I bring up price?”
My answer: It depends.
if you mention price immediately, you run the risk of sticker shock...before you ever get to talk with the potential customer or client about what they need (and value.)
If you’re selling an actual product versus a service, you’ve got to put a price on it….but don’t simply plop the product on your web site (or store shelf) with no thought to positioning, communication, or service. (Example: “How to Buy” on a site should explain “WHY” to buy.)
Price can also be a self-qualifier. If the customer is looking for the lowest deal, no matter what - he or she is likely not the best business for you. And, you’ll have to work just as hard for $500 as $5000.
Then there’s the personality factor. For example, I want to get to the bottom line almost immediately. Others don’t. What’s reasonable for some isn’t for others. And so on. You’ve got to know both your general target customers’ needs (and wants)…as well as do some individual qualification. You’re selling to a person, not a demographic.
See? It all depends.
(P.S. Thanks to my friend Mary Ellen Merrigan for inviting me to present. It’s always great to spend time with enthusiastic, smart people who want to do better and learn more.)
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Tags: marketing, pricing, marketing troubleshooting, entrepreneur sanity check
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October 14th, 2008 at 12:25 pm
Thanks for sharing your opinions and your expertise, Mary! Your segment on pricing represented just one of the many subjects MARKETLINK tackles. My respect for these entrepreneurs grows weekly. Fourteen participants dedicated ten-plus hours per week for twelve weeks to working on their business rather than in it.
Instead of wringing their hands and worrying about an economic meltdown, this group is focusing on opportunity. They’re asking hard questions (you got a few) and collaborating to work smarter. They’re ignoring the chaos. (One participant’s generator caught fire last Thursday and power was still out at the business. When I commended her on taking the time for class, she said she wouldn’t miss it.)
Wow! That’s passion. ..synergy…enthusiasm. And, isn’t that what life’s all about?