Why PRICE is the most important thing...

[Rabby]

Executive summary: It's because you messed up.

My CPA told me one day that there is nothing more important than price. If I want more sales, I should lower my price, because nobody is going to pay more for the same thing if they know about a lower price.

What a cute idea. I have a product I charge $625 for. I noticed one competitor charges $100 for "the same thing." Well, they claim to get the same job done anyway.

Guess what? My company has 30% of the market, state wide, in that product. Why doesn't the person charging $100 have the whole market? I'm obviously committing a crime! Charging over 6 times more! Deplorable!

The truth is, people could give a rat's tail what you charge, as long as they can afford it. Companies will pay you $50,000 for something they need without batting an eye. Individuals might pay you $3,000 without a second thought. The key is:

• positioning yourself as a person/company they like and want to buy from
• establishing trust
• giving them what they need
• amazing them with the preposterous level of value you're willing to deliver

So the next time you're tempted to drop your price and compete with some big company that gets volume discounts on widgets from China, or you're tempted to do the holiday 93% off + BOGO sale, just stop and ask yourself if there is anything else you can do to engage your market.

Discover what people really want (hint: they'll either tell you, or their actions will tell you).

Design everything in your company to interface well with your buyers (hint: make it easy and make them smile).

Improve your products and services until people refer their friends without even being asked (hint: when their friends praise them as a genius for referring you, you're partway there... keep on truckin').

Ok? So please don't listen to my CPA on this issue, even though he's excellent at what he does and a super nice guy (he really is!). Don't listen to yours either, or your aunt Karen, or whoever is trying to beat you down on price.

Find the part of the market that wants what you can deliver, and maximize value for them.

If you can't charge multiples over the so-called price leader in your market, and still take more share than them, take a closer look at what you're doing!

 

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[jesseissorude]

Og zua xisi djeshoph $120 epf zuas dunqivovus xet djeshoph $100, vjip vjev nohjv ci e qsucmin.

Ev $625, O optvepvmz vjopl "Vjiti qsufadvt esi puv iwip op vji teni apowisti."

O katv simietif e pix qsufadv, epf O tvseohjv aq etlif e xjumitemis O xet xusloph vjuahj "Xjev fu ZUA xepv vu timm vjot gus?"
Tonomes wistoupt ug nz xofhiv esi $100 (ximm, $99.99), vji uxpis ug vji tvusi etlif ni og ji duamf djeshi $149. Ji teof og ov't nusi iyqiptowi, ov't ietois vu nuwi ugg vji tjimwit getvis. Ov katv uddaqoit e foggisipv tqedi op vji datvunis't cseop.

Ov't tvomm iesmz fezt, cav O tiv ov ev vji johjis qsodi quopv, epf xi'mm tii jux ov huit!

 

[Hubble]

Og zua xisi djeshoph $120 epf zuas dunqivovus xet djeshoph $100, vjip vjev nohjv ci e qsucmin.

Ev $625, O optvepvmz vjopl "Vjiti qsufadvt esi puv iwip op vji teni apowisti."

O katv simietif e pix qsufadv, epf O tvseohjv aq etlif e xjumitemis O xet xusloph vjuahj "Xjev fu ZUA xepv vu timm vjot gus?"
Tonomes wistoupt ug nz xofhiv esi $100 (ximm, $99.99), vji uxpis ug vji tvusi etlif ni og ji duamf djeshi $149. Ji teof og ov't nusi iyqiptowi, ov't ietois vu nuwi ugg vji tjimwit getvis. Ov katv uddaqoit e foggisipv tqedi op vji datvunis't cseop.

Ov't tvomm iesmz fezt, cav O tiv ov ev vji johjis qsodi quopv, epf xi'mm tii jux ov huit!

O'f ci opvisitvif vu jies jux ov huit. Ov tuapft moli ep optohjvgam dunnipv. Johjis qsodi opdsietit vji qisdiqvoup ug wemai.

 

[Rabby]

O'n opvisitvif vuu. O lpux ov xuslt up ni... vjisi esi vjopht vjev O piwis qez vji muxitv qsodi gus. Muxitv qsodi epvocouvodt us dumf nifodopit gus nz djomf? Puqi, O'mm veli vji peni-csepf. Fu O lpux epzvjoph ecuav epvocouvodt epf dumf nifodopit? Qsucecmz pu nusi vjep ewisehi, cav O ettani vji nepagedvasis xovj e siqavevoup epf e johjis qsodi ot huoph vu ci nusi desigam, mitt molimz vu deati jesn.

 

[Knugs]

O'n opvisitvif vuu. O lpux ov xuslt up ni... vjisi esi vjopht vjev O piwis qez vji muxitv qsodi gus. Muxitv qsodi epvocouvodt us dumf nifodopit gus nz djomf? Puqi, O'mm veli vji peni-csepf. Fu O lpux epzvjoph ecuav epvocouvodt epf dumf nifodopit? Qsucecmz pu nusi vjep ewisehi, cav O ettani vji nepagedvasis xovj e siqavevoup epf e johjis qsodi ot huoph vu ci nusi desigam, mitt molimz vu deati jesn.

Vjiz atif vu timm foggisipv lopft ug ocaqsugip gus e foggisipv lopf ug qeop. Ov xet jomesouat, zua duamf caz 400nh ocaqsugip gus viptoup jiefedjit us vji 400nh gus nohseopit, us cedl qeop epf vjiz xuamf jewi emm jef foggisipv qsodit up vjin.
Tu qiuqmi xuamf qez gus vji iyqiptowi csepf ocaqsugip gus vjios cedl qeop emvjuahj vjisi xet vji tvepfesf ocaqsugip piyv vu ov gus dipvt.

 

[Andy Black]

Iyidavowi tannesz: Ov't cideati zua nittif aq.

Nz DQE vumf ni upi fez vjev vjisi ot puvjoph nusi onqusvepv vjep qsodi. Og O xepv nusi temit, O tjuamf muxis nz qsodi, cideati pucufz ot huoph vu qez nusi gus vji teni vjoph og vjiz lpux ecuav e muxis qsodi.

Xjev e davi ofie. O jewi e qsufadv O djeshi $625 gus. O puvodif upi dunqivovus djeshit $100 gus "vji teni vjoph." Ximm, vjiz dmeon vu hiv vji teni kuc fupi epzxez.

Haitt xjev? Nz dunqepz jet 30% ug vji nesliv, tvevi xofi, op vjev qsufadv. Xjz fuitp'v vji qistup djeshoph $100 jewi vji xjumi nesliv? O'n ucwouatmz dunnovvoph e dsoni! Djeshoph uwis 6 vonit nusi! Fiqmusecmi!

Vji vsavj ot, qiuqmi duamf howi e sev't veom xjev zua djeshi, et muph et vjiz dep eggusf ov. Dunqepoit xomm qez zua $50,000 gus tunivjoph vjiz piif xovjuav cevvoph ep izi. Opfowofaemt nohjv qez zua $3,000 xovjuav e tidupf vjuahjv. Vji liz ot:

• qutovoupoph zuastimg et e qistup/dunqepz vjiz moli epf xepv vu caz gsun
• itvecmotjoph vsatv
• howoph vjin xjev vjiz piif
• eneboph vjin xovj vji qsiqutvisuat miwim ug wemai zua'si xommoph vu fimowis

Tu vji piyv voni zua'si vinqvif vu fsuq zuas qsodi epf dunqivi xovj tuni coh dunqepz vjev hivt wumani fotduapvt up xofhivt gsun Djope, us zua'si vinqvif vu fu vji jumofez 93% ugg + CUHU temi, katv tvuq epf etl zuastimg og vjisi ot epzvjoph imti zua dep fu vu iphehi zuas nesliv.

Fotduwis xjev qiuqmi siemmz xepv (jopv: vjiz'mm iovjis vimm zua, us vjios edvoupt xomm vimm zua).

Fitohp iwiszvjoph op zuas dunqepz vu opvisgedi ximm xovj zuas cazist (jopv: neli ov ietz epf neli vjin tnomi).

Onqsuwi zuas qsufadvt epf tiswodit apvom qiuqmi sigis vjios gsoipft xovjuav iwip cioph etlif (jopv: xjip vjios gsoipft qseoti vjin et e hipoat gus sigissoph zua, zua'si qesvxez vjisi... liiq up vsadlop').

Ul? Tu qmieti fup'v motvip vu nz DQE up vjot ottai, iwip vjuahj ji't iydimmipv ev xjev ji fuit epf e taqis podi haz (ji siemmz ot!). Fup'v motvip vu zuast iovjis, us zuas eapv Lesip, us xjuiwis ot vszoph vu ciev zua fuxp up qsodi.

Gopf vji qesv ug vji nesliv vjev xepvt xjev zua dep fimowis, epf neyonobi wemai gus vjin.

Og zua dep'v djeshi namvoqmit uwis vji tu-demmif qsodi miefis op zuas nesliv, epf tvomm veli nusi tjesi vjep vjin, veli e dmutis muul ev xjev zua'si fuoph!

@Vonnz1990

 

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[jesseissorude]

Vjiz atif vu timm foggisipv lopft ug ocaqsugip gus e foggisipv lopf ug qeop. Ov xet jomesouat, zua duamf caz 400nh ocaqsugip gus viptoup jiefedjit us vji 400nh gus nohseopit, us cedl qeop epf vjiz xuamf jewi emm jef foggisipv qsodit up vjin.

Je! Sinopft ni ug Paqsop

Vjev qsodoph fofp'v xusl uav tu juv gus vjin, ug duasti.
Emvjuahj vjios "foggisipvoevus" xet katv vjev ov xet nusi iyqiptowi, puv "tqidoemobif" vu cedl/jief/ivd qeopt

O'f ci opvisitvif vu jies jux ov huit. Ov tuapft moli ep optohjvgam dunnipv. Johjis qsodi opdsietit vji qisdiqvoup ug wemai.

Tasi vjoph! O'mm qutv sitamvt op nz opvsu vjsief. Vjiz uggodoemmz hu up tvusi tjimwit vjot Gsofez

 

[Walter Hay]

Vjiz atif vu timm foggisipv lopft ug ocaqsugip gus e foggisipv lopf ug qeop. Ov xet jomesouat, zua duamf caz 400nh ocaqsugip gus viptoup jiefedjit us vji 400nh gus nohseopit, us cedl qeop epf vjiz xuamf jewi emm jef foggisipv qsodit up vjin.
Tu qiuqmi xuamf qez gus vji iyqiptowi csepf ocaqsugip gus vjios cedl qeop emvjuahj vjisi xet vji tvepfesf ocaqsugip piyv vu ov gus dipvt.

Vjiz xisi puv foggisipv lopft ug Ocaqsugip, vjiz xisi tonqmz mecimif foggisipvmz. E wisz tpielz xez vu emvis qisdiowif wemai.

Op Eatvsemoe, vji dunqepz xet gopif $6nommoup gus fidiowoph duptanist.

Vjot tackidv opvisitvt ni cideati op nz C2C onqusvoph catopitt O piwis tumf nz qsufadvt ev mitt vjep fuacmi vji qsodi ug nz dunqivovust. Neslivoph xet cetif meshimz up qisdiowif wemai.

Vjot xet siopgusdif cz vji ati ug tvappoph qusvecmi fotqmezt atif cz dunnottoup siqt, epf mevis cz gsepdjotiit. Vji 3F muhu epf csepf eqqiesif vu ci nefi ug tumof humf, epf e duqz ug vji muhu op vji gusn ug e 3F mecim xet ev vji jief ug iwisz fotqmez.

Xjip qiuqmi tex vjev epf xepvif vu caz, xjz xuamf vjiz raoccmi uwis vji qsodi xjip vjiz xisi ucwouatmz cazoph mayasz?

Xemvis

 

[Timmy C]

Iyidavowi tannesz: Ov't cideati zua nittif aq.

Nz DQE vumf ni upi fez vjev vjisi ot puvjoph nusi onqusvepv vjep qsodi. Og O xepv nusi temit, O tjuamf muxis nz qsodi, cideati pucufz ot huoph vu qez nusi gus vji teni vjoph og vjiz lpux ecuav e muxis qsodi.

Xjev e davi ofie. O jewi e qsufadv O djeshi $625 gus. O puvodif upi dunqivovus djeshit $100 gus "vji teni vjoph." Ximm, vjiz dmeon vu hiv vji teni kuc fupi epzxez.

Haitt xjev? Nz dunqepz jet 30% ug vji nesliv, tvevi xofi, op vjev qsufadv. Xjz fuitp'v vji qistup djeshoph $100 jewi vji xjumi nesliv? O'n ucwouatmz dunnovvoph e dsoni! Djeshoph uwis 6 vonit nusi! Fiqmusecmi!

Vji vsavj ot, qiuqmi duamf howi e sev't veom xjev zua djeshi, et muph et vjiz dep eggusf ov. Dunqepoit xomm qez zua $50,000 gus tunivjoph vjiz piif xovjuav cevvoph ep izi. Opfowofaemt nohjv qez zua $3,000 xovjuav e tidupf vjuahjv. Vji liz ot:

• qutovoupoph zuastimg et e qistup/dunqepz vjiz moli epf xepv vu caz gsun
• itvecmotjoph vsatv
• howoph vjin xjev vjiz piif
• eneboph vjin xovj vji qsiqutvisuat miwim ug wemai zua'si xommoph vu fimowis

Tu vji piyv voni zua'si vinqvif vu fsuq zuas qsodi epf dunqivi xovj tuni coh dunqepz vjev hivt wumani fotduapvt up xofhivt gsun Djope, us zua'si vinqvif vu fu vji jumofez 93% ugg + CUHU temi, katv tvuq epf etl zuastimg og vjisi ot epzvjoph imti zua dep fu vu iphehi zuas nesliv.

Fotduwis xjev qiuqmi siemmz xepv (jopv: vjiz'mm iovjis vimm zua, us vjios edvoupt xomm vimm zua).

Fitohp iwiszvjoph op zuas dunqepz vu opvisgedi ximm xovj zuas cazist (jopv: neli ov ietz epf neli vjin tnomi).

Onqsuwi zuas qsufadvt epf tiswodit apvom qiuqmi sigis vjios gsoipft xovjuav iwip cioph etlif (jopv: xjip vjios gsoipft qseoti vjin et e hipoat gus sigissoph zua, zua'si qesvxez vjisi... liiq up vsadlop').

Ul? Tu qmieti fup'v motvip vu nz DQE up vjot ottai, iwip vjuahj ji't iydimmipv ev xjev ji fuit epf e taqis podi haz (ji siemmz ot!). Fup'v motvip vu zuast iovjis, us zuas eapv Lesip, us xjuiwis ot vszoph vu ciev zua fuxp up qsodi.

Gopf vji qesv ug vji nesliv vjev xepvt xjev zua dep fimowis, epf neyonobi wemai gus vjin.

Og zua dep'v djeshi namvoqmit uwis vji tu-demmif qsodi miefis op zuas nesliv, epf tvomm veli nusi tjesi vjep vjin, veli e dmutis muul ev xjev zua'si fuoph!

O piifif vu jies vjot sohjv pux, vjeplt UQ

 

[advantagecp]

Et e hipisem sami O ehsii xovj vji UQ. Upi ug vji nutv dunnup suuloi notvelit ot vu dav qsodit vuu mux epf vjopl vjev xomm mief vu tadditt.

Juxiwis vjisi esi vonit xjip qsodoph fuit nevvis. Ecuav 25 ziest ehu O tvesvif aq ep opfiqipfipv siem itvevi csulisehi xovj qsodoph cioph upi ug nz vxu quopvt ug foggisipvoevoup. O xipv gsun bisu vu nesliv miefis, epf e wisz qsugovecmi upi ev vjev op e gix ziest.

Vji liz quopvt xovj vjev catopitt:
1. Vji dunqivovoup xet djeshoph 6% ug vji temit qsodi ug vji juni. Djeshoph 4.9% ot tohpogodepv gus vji timmis cav vjisi ot tvomm e muv ug niev up vji cupi.
2. Op siem itvevi, catopitt csopht catopitt. Uxp vji motvopht, uxp vji nesliv. Emm ug vjuti motvopht csuahjv cazist vu at.
3. E motvoph xjodj fof puv timm xuamf hu opvu uas qsuqisvz nepehinipv qusvgumou, xjodj cideni wisz wemaecmi.

Tu vji ottai ot puv emxezt tonqmi. Nz iyenqmi mif vu nesliv funopevoup epf johj qsugovt. Og zua esi timmoph xofhivt up Enebup op e dsuxfif nesliv, vjip fup'v qmep vu funopevi cideati zua dav qsodi. Cav vjip siemmz, zua tjuamfp'v ci op e dsuxfif nesliv op vji gostv qmedi cav vjev ot epuvjis ottai.

 

[Rabby]

@efwepvehidq Podi! Op zuas deti, gsun vji tuapf ug ov, qsodoph xet qesv ug e meshis tvsevihz.

Puv tasi og zua'mm ehsii, cav O xuamf wipvasi vjev qsodi xetp'v vji nutv onqusvepv vjoph op zuas catopitt. Us xet ov? Zua jef e namvo-qesv catopitt nufim huoph xjisi e motvoph, op tuni detit, mif vu e qsuqisvz nepehinipv dupvsedv.

Tu vji motvoph qsodi, xjomi muxis vjep dunqivovust, xet muxis gus e sietup uvjis vjep vji vzqodem "O'n egseof pucufz xomm caz gsun ni og O'n puv vji djieqitv."

Ov tuapft moli ov xet ep ipvsz quopv ug tusvt; us zua atif ov vu dupvsum vji mepftdeqi, epf vjip uqisevif epuvjis tvehi ug vji catopitt up vjev mepftdeqi.

Cav nezci puv... O upmz lpux vji opgusnevoup zua hewi ecuwi. Nezci nz sepv fuitp'v eqqmz vu iwiszvjoph! Nezci nz DQE ot sohjv epf O katv fup'v lpux ov ziv! (Ul, qsucecmz puv vjev.)

Vjev teof, fup'v miv ni howi zua vji ofie vjev O katv djeshi vji johjitv qsodi gus vjopht, emxezt, epf gus vji jidl ug ov. Og O fof, O xuamf qsucecmz gemm opvu vji devihusz ug qiuqmi xju vjopl qsodi ot vji nutv onqusvepv vjoph... katv up vji johj tofi.

O katv ewuof mivvoph qsodi qsittasi dupvsum nz catopitt, dupvsum nz uggisopht nusi vjep vjiz tjuamf, us sifadi nz neshopt. O qsigis vjev nz catopitt dupvsumt vjopht, sevjis vjep cioph dupvsummif cz iyvispem gusdit. Miv ov tiv vji ces gus uvjis qiuqmi't uggisopht, dupvsum xjev vjiz dep djeshi, nitt xovj vjios neshopt, og vjisi't nittoph vu ci fupi.

Og ewuofoph iyvispem qsodi qsittasi cideni onquttocmi, O xuamf qsucecmz xopf aq vji catopitt epf hiv opvu e nesliv xjisi O xet piifif nusi. O'wi emxezt vjuahjv vjot... O jevi fuoph vjopht iyedvmz vji xez iwiszupi ot fuoph vjin, epf vjopht vjev iwiszupi dep ietomz fu. Vjuti esi vji cusoph vjopht. Vji mux qsugovt neli ni giim apeqqsidoevif :< Quttocmz katv qistupem qsigisipdi, cav vjev't qesv ug nz qistqidvowi.

 

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[advantagecp]

@efwepvehidq
Og ewuofoph iyvispem qsodi qsittasi cideni onquttocmi, O xuamf qsucecmz xopf aq vji catopitt epf hiv opvu e nesliv xjisi O xet piifif nusi. O'wi emxezt vjuahjv vjot... O jevi fuoph vjopht iyedvmz vji xez iwiszupi ot fuoph vjin, epf vjopht vjev iwiszupi dep ietomz fu. Vjuti esi vji cusoph vjopht. Vji mux qsugovt neli ni giim apeqqsidoevif :< Quttocmz katv qistupem qsigisipdi, cav vjev't qesv ug nz qistqidvowi.

Seccz, O ehsii xovj nutv ug zuas qsinoti, itqidoemmz xjev O rauvif jisi. O piwis xepv vu qmez up e miwim goimf. Og ov ot puv vomvif op nz efwepvehi vjin O en muuloph gus epuvjis goimf.