Breaking Free of the Price-Product Link

by Joseph Norcott

Determining your price where you make a profit that will drive the lifestyle you desire is based on additional factors that determine your pricing.  Here are a few more thoughts from reading the book:  ‘No B.S. Price Strategy’ by Dan Kennedy & Jason Marrs

Who is Buying the Product?

Take a look at your customer base and determine your best buyers.  Are they Affluent, from one or more niche businesses or a sub-culture of a niche?

Different people buy the same product or service at different prices because of who they are rather than what the product is.

Timing & Who matters.

Parent spends more money on their 1st born than on their 2nd or 3rd..

EVERYTHING has DIFFERENT VALUE to DIFFERENT PEOPLE…WATER in the DESSERT can cost more than  sitting next to a spring…

Affluent people buy the “same” thing at higher prices because of their ability and many other reasons…
The Buyer matters – IDENTIFY WHO that is, or can be.  They could be a buyer from multiple sources or just one type of buyer.  You must Identify them and tailor your message to make them raise their hand.

Who is Selling the Product?

It better be you because Price is based on WHO versus WHAT
(Credibility, Authority, Celebrity)

What your product or service you provide sells a solution.   You sell the product.

You cannot be “just another WHATEVER” doctor, lawyer, butcher, baker, candle stick maker – you must be UNIQUE, DIFFERENT.
THE EXPERT –   Word will get out that you are the go to person when it comes to your Niche, Product or Service.
The one thing no one can ever replicate or duplicate or copy is YOU YOU YOU

Remember….People deal with People

The Context in Which it is Being Sold

Context is more than just a product or service, think intangible benefits and values, results/implications of buying.

A definition: the circumstances that form the setting for an event, statement, or idea in terms of which it can be fully understood and assessed.

It is the expectations of the consumer.  It’s based on where they are buying it, perhaps brand (not necessarily compelling factor) and the expertise of the sales person not the product.

If I go to Walmart and want to buy a drill I will see it on the shelf and can help myself to it.  Am I buying the right drill for the job?

If I go to HomeDepot or Lowes, I can get expert advice from the sales staff on whether the same drill is powerful enough for the job or a competitor drill is of better quality.  I can even get recommendations on drill bits I will need to get the job done.  Because the holes I’m drilling are to provide for a solution to a problem say to build an outdoor deck.
REAL VALUE and CONTEXT is much much deeper than product or service.

BONUS: Eliminate Apples-to-Apples Comparisons – Obvious differentiation

But the main point is that EVERYTHING can be made to compare to something DIFFERENT than a “typical” competitor.

In an afer schhol business such as a dance school  or music school we would not compare prices with other schools when selling – we would compare with SYLVAN Learning Center, Kumon Math, Private Tutors, kids counselors, the price of probation and in home detention, the ability to earn a college scholarship…

THAT my friends is APPLES to ORANGES not APPLES to APPLES!

So what are you waiting for?  Now is the time to ask for the Price for your products or services you are entitled too.

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