How you price a product can help you differentiate your
product or service offering. You can
find a unique pricing approach as a compliment to your brand’s positioning.
Below are 5 ideas you can use to price differently.
Can you ask people to
pay with money + something else?
What if your brand and offering provides
aid and comfort to people as they age. It could be products or services. What
if as part of your fee structure you offer a $100 price reduction if the
customer/client agrees to donate 3 hours of time at a charity of their choice
that provides services to the elderly? What a great way to live your brand
instead of a plain vanilla discount. Could movie theaters offer matinee shows one day a week for the price of a can of soup? Can an accountant offer an hour of free service with every 4 hours purchased if you donate a toy for tots at the holidays? Money is but one form of currency to use.
Can you structure
What if you sold your services like a monthly magazine
subscription or an annual fee instead of an hourly rate? It could allow for
better budgeting of expenses by clients and could help you avoid them feeling
that they are under the clock. A marketing consultant I admire named Jim Connolly offers an annual fee for his services for small business to fit their budget. So they don't feel like they are getting pinched by the hour. Smart. Very smart.
Can they lease
instead of buy?
If you have
equipment you sell, would a leasing arrangement be better for the customer so
that the lease brings the financing to them. Think like car sellers who take an
expensive purchase and turn it into a monthly rate for a certain term. Break the price into bit size servings.
Can you give it away
for free and charge for something else?
Maybe you should give away the
product or service if it leads to an upgrade or it gives the user a chance to
sample. Think of a food sampling in a grocery store. Would your product benefit
from this approach? Many software companies follow this model. Use the product for free but than when the customer is hooked, give them the option to pay for more functionality.
Can you charge a lot more
and sell a lot less?
Maybe you can sell a small amount of products or
services at much higher prices and not worry about the mid-range (or low range)
part of the market. Things that are very expensive have a assumed high value because
“how else can they charge these prices if it isn’t worth it?” Maybe you are selling your product or service
short and you’d be better served selling fewer for much, much more. Price your offering for those who are willing to pay for super extraordinary service and then deliver.
So grab your pricing stickers and think outside of the
Labels: Marketing Moments, Pricing, Product Pricing Models