Should You Reduce Prices When Marketing?
You set a price for your offer and the next challenge is how to market it. You need to consider how you manage your prices while marketing. Specifically, should you reduce prices?
Do You Display Your Prices?
One frequent question is whether you should display prices when marketing. If you look at coach’s websites you will see some do and some don’t.
I believe it is better not to make your prices public, especially when you are starting out. Here are some reasons:
- If you are a coach, your offer is unique. Price comparisons don’t mean much. The prospect who seeks the cheapest coach needs help to understand what they are seeking.
- You sell benefits and so make sure your publicity covers benefits. If a prospect finds them attractive they will make contact.
- At an enrolment meeting you can adjust your offer. Do this implicitly by listening to the prospect and then show them how your offer meets their needs.
- One way to do this is the upsell. Suggest a basic package and add-on extras.
- Alternatively, downsell. Offer a cheaper package if the prospect genuinely cannot afford the best fit deal. This allows them to try your service and maybe they will invest further once they are sure you deliver what they seek.
As you become more popular and increase prices it might help to display your prices. This means people who cannot afford the prices displayed will not contact you. Do this if you find a lot of people turn you down for reasons of price but you still find enough customers.
If you become incredibly high-priced, I understand it can be better to hide your prices again. This projects an aura of exclusivity.
Should I Reduce Prices?
Should you reduce your prices globally? Usually, this is not a good idea. You need to control the number of clients you can handle. Lower prices mean you need more clients.
It may be better to introduce some low-end offers, especially if you find most warm prospects back out when they hear your prices. This gets them on your books and offers an opportunity to check you out before making a bigger financial commitment. Remember, if someone wants something enough, they will find the money.
If you believe your offers are not good enough for the price you charge, consider the price you charge indicates something of your confidence in your offer. To offer a lower price undermines your offer’s credibility. If you are right it is the offer that needs improvement. Something brilliant will always be easier to sell than something indifferent.
Should I Offer Discounts?
No, unless there is a real reason to do so.
During an enrolment conversation, you may find someone claims they cannot afford the offer that best fits their needs. Here are a few ways to respond:
- Make sure they understand the offer and its good fit with their needs. If someone wants something enough, they can offer find creative ways to meet the costs.
- Would it help to flex payments?
- Try to identify good reasons why they might receive a discount.
The point about discounts is, if you are going to make one, have a good reason to do so.
- A prompt payment discount, if the payments come in on time.
- A quick decision payment – I am not convinced by this, if someone wants your offer such a discount does not appear to make much difference.
- Add a bonus. You can do this upfront. An extra session in return for a quick decision, for example.
- You can have surprise bonuses, for clients who pay on time. Don’t offer them in advance, that’s bribery!
- Some people have discounts for charities or community organisations. The problem here is you could find you are making a lot of work for yourself that does not pay very much.
In the end, consider a downsell and leave your prices alone!
Marketing Prices
A lot hinges on marketing. If you are clear about the benefits and believe you can work with the prospect, then the offer should sell itself. Remember, your credibility hinges on your confidence and sense of self-worth.
So long as you deliver and exceed the expectations of your client, this will communicate in your favour. Next time I shall look at how high prices benefit the client.
Visit my new website, Market Together to sign up to my list, so you don’t miss any posts and hear about the exciting plans I’m working on to promote an alternative approach to marketing.
Please comment and let me know what you like about this post. What would you like me to write about further?