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.