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When looking at products, what do you notice?
- Price?
- Cost?
- Value?
What? Aren’t they all words for the same thing? Actually, no, and knowing the difference can make a big impact to your marketing …
Take as our first example Khalids tame Digger. This person charges several hundred dollars for promoting a story on social media sites. A lot of money for hitting some buttons you might think? But this social media user knows there are people willing to pay that price, and more. The value they receive is much higher than the cost.
Yesterday there was a huge buzz in the internet marketing community because of yet another massive product launch. This product was priced at $2k and promised to make people into millionaires or more than your money back. People complained it cost too much. But how could it cost too much when it promised to make you a millionaire?
The Psychology of Price
Put yourself into shopping mode, rather than a marketers mindset. Imagine you are facing a product that you are interested in, but haven’t yet decided one way or another. Some important factors start to come to mind:
- Do you want the perceived benefits?
- How much desire do you have for the benefits?
- What value do you place on the benefits?
- Are there competitors for your budget?
- Is there sufficient trust in the merchant and product?
Other thoughts might well pop up, but if we follow this thinking along, you understand the internal debate:
Well, I could buy this instead …
Wow, that’s cheap!
OK, I have that in my paypal account, but I am not sure, this seems too good to be true …
I can’t lose, either I get what is promised or I get my money back!
The Marketers Job
You have to predict those thought patterns and build up the trust and benefits to meet the price you select.
Pricing is not just a number! Creating and communicating value is much more than how much your product or service costs.
So rather than looking at your pricing as “expensive or cheap”, instead you need to match your offer to your price!
- Make your website look secure, legitimate and trustworthy
- Create an offer that is both believable and desirable
- Clearly differentiate against the competition
- Paint a vivid picture of what the benefits would be like to experience
- Show third party testimonials concentrating on their challenge, the customer experience, and the results
- Identify and empathize with a finely targeted audience so you are focusing on just the people who really want what you have to offer
- Build rapport and credibility over time using drip-fed content
Over 120 pages of tips and techniques to
