Pricing your products perfectly
Lesson 14 from: Brand Marketing Bootcamp: Build An Actionable Marketing PlanScott Lancaster
Pricing your products perfectly
Lesson 14 from: Brand Marketing Bootcamp: Build An Actionable Marketing PlanScott Lancaster
Lesson Info
14. Pricing your products perfectly
Lessons
The definition of strategy
03:39 2The 4 stages of marketing
03:16 3The difference between strategy & tactics
03:46 4The 6 laws of marketing
09:56 5Understanding Creative & Distribution
02:16 6The 4 marketing P’s and how to use them
05:08 7SWOT Matrix and how to use it
02:28 8Porter's Five Forces
04:4360/40 Law of marketing
04:04 10The marketing funnel
06:27 11Analyzing your competitors
07:14 12Deciding your target audience
06:59 13Creating your marketing objectives
11:42 14Pricing your products perfectly
08:16 15Watch this before arranging your marketing strategy
02:21 16Awareness, finalizing your awareness tactics
03:52 17Partnerships and affiliates (free tactic)
09:40 18Blog writing & SEO
07:26 19Podcasting
07:10 20Public Relations
05:58 21Giveaways
07:18 22Word of mouth
06:21 23Valuable courses
08:09 24Social media overview
05:28 25YouTube
09:36 26TikTok
03:58 27Twitter / X
04:48 30How to create better content in half the time
07:54 33Why start-ups should never use paid advertising for awareness
06:21 34Education & Consideration
01:33 35Workshops & Webinars
08:39 36Social Proof
06:55 37Effective Email Marketing
05:34 38Utilizing FAQ Sections
05:31 39Portfolio & case studies
07:39 40Leveraging product comparisons
03:26 41Tips to increase desirability
07:22 42Harnessing the power of Google reviews
05:20 43Sales & Conversion
02:28 44Psychological tricks to convert customers to buying
08:25 45Building a list of customers ready to buy
08:46 46Irresistible Offer
08:31 47Persuasive Sales Page
07:35 48Promotions & Free shipping
04:24 49Improving conversion rate (PIPE FRAMEWORK)
06:39 50Customer Retention
03:43 51Expanding your product range
07:18 52Asking for feedback & refining your product
03:37 53Loyalty programs and the subscription model
06:43 54Gifts & Surprises
05:02 55Finalizing your marketing strategy
07:40Lesson Info
Pricing your products perfectly
So now you have your marketing objectives. The next step is to get your pricing in place. Now, the perfect price for your product or service is simple. It's the maximum amount that a customer is willing to pay for your product or service. I actually once remember paying $100 for a dictionary once, but when I opened the pages, they were blank, I had no words to describe how angry I was. Now at the moment, you may have absolutely no idea how much you can sell your product or service for how much you should be selling it for. And while you can always just look at your competition and copy off them, I want to give you a couple of other strategies is to ultimately adopt to help you to strategically price your products and services a little bit more effectively. But first, let's actually understand what pricing strategy actually is. Now at its very core pricing is something that can help to craft a certain perception around a brand or a product. For example, imagine you're shopping online an...
d you're looking for a white T shirt and you see two identical white T shirts on offer on the same website. Now, one T shirt is $10 and the other T shirt is $300. They both look exactly the same. What is the first thing that comes to mind when you see those two T shirts side by side? Well, you're probably going to assume that the $300 T shirt is made from a higher quality material or it has something else about it, which makes it a little bit more special to warrant the $300 price tag. But how do you price your product or services if you've never sold anything before? Well, the first step is to actually figure out how much it costs you to actually provide the product or service. So this could include things like all the heads, the cost from suppliers to actually provide the product shipping, packaging, all that good stuff. Now, depending on your costs and also what your competitors are charging. There are a few different ways that you can approach the pricing process. For example, let's pretend we are a software company and we are ultimately providing a platform form where you can automatically post and schedule all of your social media content across all platforms. So if we look at our competition and all of their services cost $30 a month and our costs to actually provide the service. So everything included costs $10 a month. This opens up a couple of opportunities in regard to how we can use pricing to strategically position our brand. Now the first is penetration pricing. So this would mean pricing the service at 12 or four, 14 or $16 for example, to significantly undercut the rest of the market so that we can get as much market share as possible. And then once the other companies out of business, we can ultimately raise our prices. The next option is premium pricing, which ultimately means that we give a certain level of the product away for free. And then we only charge for upgrades once the person has been integrated into the actual system and they love using it on a daily basis. This works really well with software companies to honest, at least from my experience, promotional pricing is a little bit different, whereas it's a little bit lower in the beginning and it's obviously a great deal for people to come through the door and actually spend money with you and sign up. But then as time goes on, you gradually start to up the pricing to get them to a point where they are paying a more premium price, we could always price the software at $20 and ultimately still undercut our competition. But it just depends how aggressive you want to be with your pricing strategy. This was actually a technique used by John D Rockefeller, which ultimately led to him setting up businesses that were selling the product of oil at cost And then once all of the other businesses went out of business, he ultimately raised the prices gradually and he was the only person providing oil within that area. He ultimately raised the prices to whatever he wanted because he could profit as much as he liked. There was no competition to compete with him. But the real question is what do we do? If for example, your costs are more than what the larger companies are actually selling the service for. This could actually be reality as larger companies have economies of scale. So their costs are generally a lot lower, generally speaking, but obviously, this doesn't apply to every single situation. So one way to strategically price your products and services in this situation could be bundle pricing. This basically means offering more value and then bundling everything together. So it's a little bit more difficult for the customer to associate and compare the different prices between you and your competition so that you can ultimately sell the product or service for more and ultimately be more profitable. So for example, for a software company, you could ultimately give the person not only the platform to actually post their content, but you could also create a suite of templates for them to use to actually create the social media content. You could also give them access to an online group, allows them to share experiences and tips and tricks and methods with other people in the same situation. As them who are also looking to grow on social media. Now, there are other little tricks and tips in regards to pricing such as psychological pricing, like for example, instead of selling something for $10 sell it for $9.99. But then there's also something quite clever called Anchor price in which is to be honest, one of my personal favorite strategies now anchor pricing is when you basically have three or two different options and you place the option that you actually want to sell next to an option is significantly overpriced. For example, a luxury retail store could place a $1000 pair of shoes next to another pair of shoes are significantly more expensive, let's say 15 to $20,000. Now, what that does is it makes that $1000 pair of shoes look far more affordable and far better value. And the reason that this works is it's directly next to another asset or another pair of shoes, which is ultimately priced at least 10 or times higher. So how the software company could use. This particular approach is they could have three different product offerings and they could ultimately want the customer to buy the middle option. But in the more basic option, this is the premium pricing where they just basically get a really basic core number of services and offerings for free. Then the standard offer is the one that we actually want them to choose. And then the premium offer is a long list of things, to be honest, they may not even need or want. And this is priced significantly higher than the middle package by pricing things. This way, it's going to make things extremely simple for the customer to make a decision because in their minds, they're looking at the premium option which doesn't really give them everything that needs. And then they're looking at the premium option which gives them far more than they actually need. And it's actually priced far out of their budget. So the middle option is the only one left and it gives them exactly what they want to achieve their goals and objectives. Now, another way we could approach pricing is to sell our membership annually. So for example, if we are selling the monthly membership at $20 per month, we could potentially sell the yearly membership at $200 per month. So it's actually incentivizing the customer or the person who wants to buy the product or service, invest more in the beginning so that they save over the long term. Now, remember in regards to your pricing, there's no perfect answer here. There's ultimately the answers that are going to get you more sales and the ones that are going to get you less. But remember it's not always best to be cheapest because as we've already discovered with the T shirt example earlier on in this lesson, the cheapest is often perceived as the worst in regard to quality. That's just a subconscious thing that happens when we are viewing two almost identical offerings at different price points. Now, hopefully, this gives you a couple of ideas in regard to how to price your products or services. But if not feel free to reach out, I'm more than happy to help and be as supportive as possible. And if it becomes really challenging to you sell any product or service that you're trying to offer the market, then try something like giving away a free gift. I recently bought something and I got a free mouse which was really cool. I need to feed him every day, but he's cute, I suppose. Anyway, now you've got an idea in regards to how to price your products and services. Let's move on to the next lesson in the course. I'm super excited with the momentum that we are making. I'll see you soon.
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