Make Your Price Sell - The Master Course HTML version
The successful producer of an article sells it for more than it cost him
to make, and that’s his profit.
But the customer buys it only because it is worth more to him than he
pays for it, and that’s his profit. No one can long make a profit
producing anything unless the customer makes a profit using it.
--Samuel Pettengill, U.S. Congressman 1930’s
On the Internet, time waits for no company. Your customer has access to tons of
information through the Web. Your competitor is a mere mouse click away. You
have to get the price right... the first time. In the digital market scene, there
are very few second chances.
Pricing is risky. What price is too high? What price is too low? Will a certain
price work three months from now? Do you know? Do you know for sure?
Pricing is one of the most important marketing decisions you will make. So
much hinges upon it…
If you are selling a commodity, you already know that your profit margins have
to be razor-thin. You are forced to compete on price. It’s sometimes the only
thing that sets you apart from the field. And your business has to be seamless
in its operation. Gaps are too costly.
If you have a proprietary product, its uniqueness and benefits have to be
recognized as such by the market. You have to know if your product has
enough original features to warrant a higher price than the cookie-cutters
Perhaps you are considering a new product concept? Not sure if it will fly?
Imagine if you could know how much exactly people would pay for it. You’d
know if this new idea would be worth pursuing... or not (just think of the dollars
and time saved).
Launching a new product? How will you price it? How do you know the
absolutely perfect price -- the price that will maximize your income and
your "customer's profit," right from the outset?
What about existing products that you sell? Market conditions change rapidly --
is your pricing up-to-date? Smart pricing maximizes returns, at launch and all
the way through the product maturation cycle.
And what do you know about your customers’ Net buying habits? How many
buy this kind of product on the Net? How much do they usually spend?