…die by price.
As much as I like lists of 5, there are only 2 real reasons you never want to market your goods or services based on price:
- Someone could be smarter than you: If they are, they will get better and better, more efficient and drive the price lower than you can go. Wal-Mart springs to mind.
- Someone could be dumber than you: If they are, they have no idea what their costs are and they will slash prices till there is nothing left. Sure, they will go bankrupt, but will the market survive after they have eroded it? (ALA K Mart)
People only make decisions based upon price when they have no other data to go on.
Remember, if all decisions were based upon price we would all drive the KIA Rio.
Absolutely true Hugh. It’s always tempting to discount our price when we think it will increase sales. There are times when it is just the opposite. When we make it cheap it is perceived as cheap. That is my opinion also on Free Books. Sample chapters are okay, but a free book is worth the paper it is printed on.
I heard a very experienced entrepreneur once say “When everything seems bleakest around you, never forget the worth of what you have created.” I think the same applies when selling. If you believed in what you are doing enough to go all in, as most of us do, then have the courage to stand behind the value you have created.
Cheap doesn’t necessarily mean better — this is what I live by especially that I am both an entrepreneur and a customer. As the former, provide top-grade goods and services and market your product well. As the latter, be aware of what you’re getting yourself into, weigh your options, and familiarize yourself with the alternative.
Great points, guys. Thanks for participating.