How would you like to find out how one company was able to change one thing and then boost sales by 533%, then make another tweak and and then boost sales by 5,499%? I will show you exactly how they did it here.
Ever since I got started in sales decades ago in the 3rd grade selling Christmas cards and combs door to door, I have always wondered about pricing. Yup, I started early. I wanted to buy a camera and a chemistry set.
As I moved on to selling different things, I discovered quite a bit more about pricing, much of it by accident. And one lesson that is quite funny actually, but very insightful that I promise to share later.
As I got older, I made it a point to study pricing in books and in practice. While pricing is important, it is not the only thing that determines profitability or if the sale is made. But, for the vast majority of items, it can be the overarching determining factor of the purchasing decision. The best three ways to find out are test, test, and test.
Over the years I seem to have heard quite a bit of pricing lore that were always seemingly contradictory, yet in their own way, each made sense if you looked at them in a vacuum. What this means is like any information, it can be dangerous in the if not used properly or in the hands of the ignorant or stupid.
First one that I happen to like the most is, never sell from your heals, in that you don’t want to be timid when selling and the fist thing you go to is to start negotiating with customers on price rather than letting them know how your product or service benefits them. Much, much more on this in another post and video.
Second one is that the lower price will almost always win. Pretty much true at least 85% of the time for most products.
Third is that you get what you pay for so, you should always be the highest priced product or service. When you are you have to deal with less customers and have less overhead, so you make more money.
Well, as a story I saw the other day in Tech Dirt reminded me, with the Internet, there are a couple of new ones along those same lines. One of the reasons why I like the Internet so much is that it can give you instant feed back and it allows you to test everything and shorten the feed back loop so that failure happens more quickly. This allows you to figure out what works and what doesn’t. Contrary to what you may have thought, failure is not only a good thing, but you need to embrace it when it comes to your sales and marketing.
But like getting a kiss from your favorite aunt when you were a kid, you just want a quick peck on the cheek and get it over with as soon as possible, but still be glad to see her. Do not get into a big old slobbery smooch. Kind of grosses you out doesn’t it? Good! I want it to. You should have the same aversion to hanging out with failure in your sales and marketing as getting that big slobbery smooch from Aunt Ethel. Although after looking at some companies marketing and sales programs it does make you wonder.