Last week we talked about Product as it relates to Branding. Now we get to talk about Price.
I want to start with a pretty simple question for all of you. Do you attend Workshops? What does the pricing of the Workshop do in your thinking around it? I can tell you that my experience is that people attend at the highest rate those workshops that have a modest fee. Why is that?
Too high of a price is easy to explain. Unless the speaker is well known or the topic is completely relevant, the value of the time spent is too rich. This means that too high of a price drives away people who have no Brand Awareness or have low Brand Value.
On the other hand, Free can be just as troublesome. Having a free activity means that you have told the attendee that there is Low Value. You did this whether you meant to or not. The attendee will register and only attend if they have nothing to do.
Which brings us back to our optimal pricing of some nominal fee. You have told the person that you are giving them value but not pricing it so high that they won’t risk an hour of their time. Having this sort of pricing has told people about the Value that you are bringing. There will be some Value in the topic, but expect to have a Call-To-Action (CTA) for further purchases. This kind of CTA is expected and acceptable as long as it does not get obnoxious.
So, now we can take a step back and see what our Pricing of this single item has done. It has defined the Value that should be expected. Attendees can then decide whether they place the same worth on what you have delivered as you do. Meeting and preferably exceeding Price/Value points builds your Brand. People who are buying either high cost or low cost are only comparing their purchase with Expected Value ahead of time and Actual Value after purchase.
But it is this latter that is what drives Brand Value. Did the Customer think he or she got more than what she paid for? You have two variables. The Price and the Product/Service. The Customer will then report his or her experience to others. This conversation is where Brand ultimately gets built.
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