You’ve finally got a meeting scheduled with your prospect. (If you missed them, you might want to read about how to get more people to convert on your site, and when to call them to get an initial conversation.) I … Read More
psychology
Price Competition How to Avoid It and How to Win It
Price competition can seem scary, but many of the wounds are self-inflicted. While that sounds discouraging, it’s actually good, because it means you can take control of them, avoid them, and win deals at better price points. Pricing is the … Read More
Economic Theory vs Human Nature III: 3 Sales Tips
In earlier posts in this series, we looked at why human nature causes you to underprice your proposals and favor sins of omission over sins of commission, even against our own economic interests. Now we’ll look at some strategies for … Read More
Sell More by Selling Less
You walk into the doctor’s office with a cut on your hand. You think you need some stitches and perhaps some antibiotics, but you’re not sure. The doctor says, “great to see you. Looks like you could use a heart … Read More
Selling a Commodity for a Premium Price
How can you charge more for a commodity? Here’s one of my favorite examples. 24 ounces of ketchup at $0.07/oz. Turn that idea on its head. 32 ounces at $0.079/oz. The price per unit goes up almost 13%. Not bad … Read More
Real vs. Perceived Value
If your maximum price is determined by the perceived differential value of your offering, how do you know what value customers perceive. Many of them won’t tell you, especially if they think you’ll use that information to jack up the … Read More
First step in running a profitable business: don’t be scared of making money
In my line of work, I encounter a lot of small business owners who set their prices by copying the “going price” in “the market” or by sticking their fingers in the wind. This is unfortunate, but fixable. What really … Read More
If you think you’re worth it, but can’t say it…
A lot of businesses think they have a great product or service. Something above and beyond what the competition offers. But when it comes time to put a price on all this awesomeness, they are still cheaper than the competition. … Read More
Pricing and the Placebo Effect
This summer, Steve Silberman over at Wired wrote a great article called “Placebos Are Getting More Effective. Drugmakers Are Desperate to Know Why.” While the implications for pricing in the pharmaceutical industry are obvious, there are also important analogies to … Read More
I Am Rich– No More
We’ve had other discussions about how for some luxury goods, the exorbitant price is part of the value (see $300,000 watches that only tell you whether it’s day or night). Meanwhile, as some of you may have heard, Apple launched … Read More