Melting the “ICE” Out of Price

We’re living in challenging economic times, and that is certainly reflected in consumer spending.

It’s not as if there was some surreptitious tightening of the belts across the country; it’s simply an obstacle that everyone is aware of — especially the small business owner.

Now, I’ve said this before — you shouldn’t be positioning yourself solely on price. If your aim is to be the “Walmart” of your niche, then by all means, slash those prices. For the rest of us, we need to take a good hard look at our sales letters, our sell sheets, and our pitches.

Bottom line: your prospect must want your product MORE than they want their money.

What I’d like to do is share with you a few techniques I have used, and share with my clients. This is by no means a comprehensive list, and simply reading the list over is likely to spark a few more ideas of your own. That’s the point — so let’s get started!

• It’s all in the expression. Years ago my father shared this tip with me, and it has always stuck with me. Let’s say for example that you are selling a widget for $1.00. Sales are steady, but not brisk. If you are interested in moving more volume, you could change the way you sell this item to a “buy two, get one free” offer. We would change the individual price to $1.50. You’ll still make the same amount as you would have by selling the same item at $1.00 each — but you’ll move more product as a result of the “free” item.
• Don’t bench the benefits. Many salespeople get this wrong. Instead of focusing on all of the features of an item, zero in on one thing — what will your product DO for the customer? What problem will it solve? Will it make them better looking, wealthier, smarter, or more popular? Consumers will pay for solutions — but they often need you to help them visualize the end result that your product will offer.
• The Rule of Three. This is a very old selling technique, but it is timeless. Offering a product or product mix at three different price points can be very effective. This accomplishes multiple goals for you. First, for the customer who may not be able to afford the high end product, they may instead select the midline product. For those who are inclined to scrutinize and compare packages, this affords you the opportunity to showcase the additional benefits that the higher end product provides. You may also wish to offer some manner of “upgrade” for those who select the midline or economy end packages — this gives you an opportunity to make additional sales after the initial purchase.
• Size Matters. Do you offer a product or service that is offered on an annual basis? If so, why not consider breaking that price down into an almost laughable price (i.e. $.40/day)? This forces the prospect to reconsider the pricing, and will often be the impetus they need to make the purchase. They can easily justify spending forty cents per day — you can’t even buy a can of soda for that price! To really drive this point home, use this technique in conjunction with an example of how much money your product or service could save them (or make for them) during that same one-year timeframe.

We’re all familiar with the sobering statistics of small business success, even in the best of times. Despite this, history has proven that there are some businesses that not only survive, but thrive in tough economic times.

Their success isn’t by chance — it’s by surveying and adapting to the market, and making the necessary adjustments to service their niche. It’s a smart strategy that is worth adopting as your own.

Otherwise, you may well find yourself left out in the cold.

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