Vadim Kotelnikov    

Effective Pricing

Pricing strategies and principles that will help you win more customers

   

Business e-Coach  Success 360  Kore 10 Tips

     

 

What Makes People Buy Customer Value Proposition Emfographics Pricing Sell benefits Emotional Marketing Customer Value PropositionL Benefits, Emotional Appeal, Price

  

 

      

 

  

Three Basic Pricing Strategies

①  Skimming Strategy

②  Market Penetration Strategy

③  Comparable Pricing Strategy ... More

High-Performing Price Tags

Extensive price tests show that .99 outperform the next even number.

The following price points lead to the highest purchase rate:

19.99  ●  49.99  ●  79.99  ●  129.99  ●  149.99  ●  179.99  ●  199.99

 

   

Add More Value (AMV) for Your Customer

Competitive Strategies

Customer Value Proposition

 

Surprise To Win: 3 Strategies

 

Create Customer Value: 10 Lessons from Konosuke Matsushita

 

 

 

 

Price in Terms of Value

"Price is what you pay. Value is what you get." ~ Warren Buffet

The best price is the one that provides you with the most long-term profits. When you price intelligently, you have a sustainable advantage over most of your competitors.

Sell differentiation value and the overall exceptional experience associated with what you have to offer.

 

 

Price in terms of value rather than cost. People will always pay  for something they love that solves a problem.  >>   Example

Sell Benefits

Virtuoso Marketing

Emotional Marketing

Don't Price Too High or Too Low

 "You’ve found market price when buyers complain but still pay." ~ Paul Graham

If your price is too high, your sales will be hurt. But this can also be true if you price your product too low, advises Derek Gehl. People think it's probably "too good to be true" and get suspicious when the price is far below their expectations. As a result, they don't feel confident making a purchase.

Provide Alternative Offers

Offer alternate products or services when you show the price of a product or service. Choices allow the buyer to make logical sense of the price.

Provide a lower and higher offer on each side of your main offer.

Menu pricing is an effective approach. Organize your offers on a menu with pricing lowest to highest, or vice versa.

 

 

Raising Prices

"There is no victory at bargain basement prices." ~ Dwight D. Eisenhower

Don't be afraid to increase your prices or fees If your price-point became unsustainable for a good reason.  If you create great, innovative and differentiated value ‒ people will pay for that. Raise your prices moderately because any large increase may be perceived as excessive. In case a moderate increase doesn't meet your sustainability goals, think about splitting your product or service into different elements.

Marketing To the Subconscious

A higher price conveys a premium product experience, causing a powerful subconscious emotional mix of self-esteem, recognition and joy in consumers... More

Focus on Emotional Drivers

Synergistic Selling: 3 Components 

Free or No-fee?

You may wish to offer complimentary products, services, and other benefits to your customer. Should you call them "free" or "no-fee"? Call them "no-fee" wherever possible. Why? Free and no-fee look, sound and feel different. "Free" suggests there may not be a great deal of value. "No-fee" suggests that there is customer value, but you are giving it as a gift.

Internet-powered Revenue Models

Freemium is a pricing strategy by which a product or service (typically a digital offering such as software, media, games or web services) is provided free of charge, but money (premium) is charged for advanced features, functionality, or virtual goods... More  Internet Revenue Models

The Tao of Pricing

By: Marlen Jensen3

Bringing Eastern enlightenment to Western marketing strategy.

Smart Discounting

Clever are discounts that commit a customer to you for further sales.

Examples:

Discounted razors, when you sell razor blades.

Discounted ink jet printers, when you sell ink cartridges.

Premium Pricing

Know your customers. If a man known for his cheapness buys from you... raise your prices immediately.

Even the "monetarily challenged" can enjoy splurging or treating themselves to a relatively expensive candy bar, shampoo, or after-shave... More

The Tao of Leadership

 

  

From the same bunch of the keys to Customer Success 360     Business e-Coach   Kore 10 Tips      Case Studies   Emfographics   Success 360   One World, One Way, icon, logo   Vadim Kotelnikov, founder of 1000ventures - personal logo     

Virtuoso Marketing

Xenia Kotelnikova Contextual Value Proposition Sell benefits What Makes People Buy Risks Perceived by Customers Pricing Mistakes Barriers To Change Selling Is Problem Solving Selling Presentation: Sell Twin Benefits Emotional Marketing Contextual Customer Value Proposition - Benefit-Cost Ratio (BCR), emfographics by Vadim Kotelnikov

 

 

 

 

References:     1. Agenda, Michael Hammer     2. "Marketing Plan", Business Resource Software, Inc.     3. Pricing Psychology Report, Marlene Jensen