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The Importance of Price

September 13, 2013 20 Comments

Price is a very vital part of your formula for success in business and with your finances.

This idea of price is one that most people are very confused about. Set your price too high and people won't buy. Set it too low, and you will go out of business or find yourself unable to really expand. Business owners and sales people are constantly hammered by the media, their customers, and even their staff with the notion that customers don’t have money, competitors have lower prices, and that the economy is not good so we must lower our prices. The first response by most is that if we lower our price, we will be more competitive and sell more of our products. While a lower price may increase traffic or interest, a lower price almost never actually sells your product. Lower prices and promotions should be used to drive traffic and create interest but not to actually close a transaction. There is nothing wrong in using price to drive traffic but you have to know how to convert that traffic successfully and then figure out how to make up the lower prices with other sales. There are five types of buyers and only one of them is driven by price. Remember that while a lower price is the popular way to make a deal, it is never the reason someone buys anything. A purchase won't happen until your potential customer is sold on the value of your offer and even more importantly convinced your offer will solve their problems. People do not buy products because of the price, they buy products with the hopes that it solves some problem. So when you see a promotion from my office like the $39.00 offer for Sell to Survive Book and Audio, which is being promoted for 1/10th of it's normal price of $390.00, we are doing that to drive traffic not to close the deal. The hope is that we can create awareness and get those unfamiliar with my company to engage with us. Be great!

20 Responses

Lightbulbman
Lightbulbman

November 01, 2016

Grant has great books, cds etc Postage and shipping is a problem
everywhere. Start checking UPS etc. longer delivery times. Find the SOLUTION. Stop bitching..

Nick Gardiner
Nick Gardiner

November 01, 2016

Very Apt for me as I’ve been asking your sales team this week about your Sell to Survive pack. Frankly the descriptions of items listed are poor, cost is not clear to what you are actually getting, there is no mention to the mechanism for downloading the MP3s listed, and as I’m in the UK, there was no mention of postage costs… Over all not a great retail experience! Though based on your post here, I now see you are doing exceptionally well at “not to close the deal”. When I found out (eventually over email) that postage to the UK would be $40+ for 6-9 day service (for a book!!), that was just icing on the cake.

Worth adding that I don’t fit the above shopper profile, driven to your site based on price. I’ve been listening to a couple of your books over the past week and wanted to buy more! I found your site with card in hand wanting to shop… Sadly I wasn’t able to as the entire experience was shocking… Snake oil Grant, snake oil….

Joanna Schaumburg Kia
Joanna Schaumburg Kia

November 01, 2016

I agree. Price is important but its not everything. I had a lot of people who bought a car from me for a higher price and one of the reasons was my service and value l showed them. They could buy for 2-3k less somewhere else.
Some of them did, most of them didnt.

Christopher Grigsby
Christopher Grigsby

November 01, 2016

Awesome Joanna!

Nick Gardiner
Nick Gardiner

November 01, 2016

Great books, check.
Great CD, check.

Postage is not a problem “everywhere”, and when you pay $40 I expect service.

As for you trying to sound like grant with the “don’t be a little bitch” comment, at least quote the big man correctly! ;-)

My solution for what its worth was to just order off Amazon. Shame as I’d of preferred to buy direct so Grant would get a better margin. Still…

NickATL
NickATL

November 01, 2016

Great post Grant. Agree 100%.

John Bell
John Bell

November 01, 2016

I run a service based industry and my prices are double what anyone else charges and I can’t keep the doors open wide enough to accommodate the demand.
Price is not a major factor in my sales. I do not consider myself a salesman and I’ve never been trained in the area and yet my closing rate is 100%. I promote very little so people have to seek me out and I still find the demand hard to keep up with. The one thing that I have total certainty in is that I can produce exactly what my client needs to improve his business and usually speaking to me for an hour over what his situation is I’ve already told him where his business is falling short and what has to be done to correct it. When one knows with certainty how to produce the best product or service for an individual and is willing to look after their needs they can sell anything.

Dano
Dano

November 01, 2016

Probally bought from you because your cute, not your service. just saying…

Nutmegg
Nutmegg

November 01, 2016

Well at least you figured out a way to make it work. Good for you. I don’t see why you have to spew hate in a public forum. Maybe a kind email to the company might have been just as (more?) effective. Your, “bitching” as Lightbulb man called it, is correctly named. It’s not an attractive quality.

David
David

November 01, 2016

Grant, I just sent the STS deal to my peer group before I read this so you are right – a great deal creates interest. Question – do you write about the 5 types of buyers in any of your books? I’ve never heard that before – where can I find out more about it?

Nuno
Nuno

November 01, 2016

That is ok because i can expect every product to be negotiated by 10% of the price unless the value increase if a new book hits the best selling list at the top. Tiger blood!

Bruce Edwin
Bruce Edwin

November 01, 2016

This is a great article here, as your articles always are. Thanks for sharing this information Grant. I have found this to be true for me my self. About a half a year ago, I lowered the rate for some of my advertising and public relations services to 450 and even 250 dollars because I was not making the amount sales I needed fast enough. I could not sell enough at these prices fast enough and stay in business. Finally I decided, I am going to not only go back to the price I had before at 1500, but raise the price to around 3000, because my services are worth that. This raised my confidence in my self and my product, and forced me to go after bigger monied clients that were more successful. Since then, my stats have continued to raise, and I will continue to raise the bar, not lower it. Thank you for all you do and your great wisdom that you regularly share with sales. – Bruce Edwin

PaulHB
PaulHB

November 01, 2016

Price may open opportunities, but I close deals…. to answer the question of how? … just Google me; Paul Blakeman, BMW.

Joanna Schaumburg Kia
Joanna Schaumburg Kia

November 01, 2016

You are wrong. Beeing just cute doesnt give you anything. Can be helpful but you not gonna win the game just because of that. If you have empty head it doesnt matter if you are handsome, beautiful or whatever. This business is too competitive so you have to be equipped with something more than apperance. Just saying…

Jaxi West
Jaxi West

November 01, 2016

very helpful. never thought of lowering price to create interest. i’ve followed your advice on ‘not to lower price’ – but this now makes sense. Thanks for educating.

Nuno
Nuno

November 01, 2016

Joanna you are cute and for me its ok to make the transaction in the first interview, i don’t care if you are new in the sector because i always will make it easy for you.

Joanna Schaumburg Kia
Joanna Schaumburg Kia

November 01, 2016

Bruce, of course there is a point and l agree that appearance does make a difference. Combined with other skills can be very helpful. The way Dano wrote seemed to me like a big shortcut thats all.The way you present it makes more sense.

Bruce edwin
Bruce edwin

November 01, 2016

Joanna, I imagine you don’t just want to be seen as just a pretty face, and yes, service and knowledge does make a sale, and, true, there are plenty of pretty sales people who can not sell because they don’t know how to close or or even rude. But as a model and talent manager, Dano does have a valid point with one thing. Appearance does make a difference in sales. If one is a slob, they will not close generally as often as a person who is impeccably groomed. And looks can influence too. Grant Cardone is a handsome guy. That fact certainly has not hurt his sales ability. Dano acknowledged that you are a pretty woman. He is right that this can help you in sales, and that is nothing to be ashamed of. And, I trust that your sales expertise, personality and knowledge makes the full package of what you’ve got- even better.

Bruce Edwin, www.StarpowerManagementLLC.com

Nick Gardiner
Nick Gardiner

November 01, 2016

Hi David,

Thanks for reaching out. I’ll follow up on email ;-)

Rgds,
Nick

David Bradley
David Bradley

November 01, 2016

Nick. I am on the Cardone Team here and can help. My email address is david@grantcardone.com and my Skype ID is dbradley72 feel free to contact me directly in the future and I will handle you personally for all your Cardone needs.

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