GKIC Ireland - Nov 2015, 2 secret pathways to charging premium prices
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The document discusses strategies for business owners to charge premium prices through understanding customer motivations and who buys their products. It emphasizes the importance of aligning pricing with the perceived value based on buyer identity and motivations, rather than solely on product features. The content invites participants to engage in workshops and presentations to implement these concepts in their businesses.
GKIC Ireland - Nov 2015, 2 secret pathways to charging premium prices
- 1. GKIC Ireland November 2015 2 Secret Pathways to Charging Premium Prices
- 2. Treasure 2
- 3. Who is John Mulry?
- 4. About Glazer-Kennedy Insider Circle GKIC offers strategies for business owners to grow their business through direct response marketing. You’ll discover how to: • Attract more of your ideal customers and clients, • Get them to come back more often, • Have them spending more on each visit, • And send you more referrals than you ever thought possible. These strategies are revealed every month in the No B.S. Marketing Letter, these chapter meetings, at live workshops and through offline and online resources. You have come to the right place if you want to hold every single Euro you spend accountable for multiplying itself and create the business lifestyle you always dreamed of!
- 5. 2 Secret Pathways to Charging Premium Prices
- 6. Most people start their thinking process about pricing with what they believe they have to sell - their product or service - essentially what’s on the shelf as it is on the shelf now.
- 7. ONE: The value or perceived value of what their thing is. From there, they figure out what price it can and should be sold for, within two contexts: TWO: At what price competitors are selling comparable things for.
- 8. For maximum profit there are two other contexts for setting and presenting price.
- 9. 1. Who is buying? 2. Why are they buying?
- 10. Who is buying?
- 11. Who you are selling to WILL determine your price.
- 12. What do you actually know about your prospects or customers? Not presume. Not believe. Know.
- 13. The chief problem with the product-based approach to pricing is: pizza is pizza. You can argue better ingredients = better pizza as Papa John’s does . . . . . . or sell quantity for price as Dominos does But basically, in the consumer’s eyes, pizza is just pizza UNTIL you change the who and why.
- 14. But there are advanced strategies to determine who buys from you. Too often in business, coupons, Groupon, Discounts, etc. drive buyers’ choices.
- 15. Switch your marketing . . . FROM an objective of being known or attracting prospects or customers to appointments, store or showroom to gain selling opportunities TO creating selling opportunities ONLY with prospects already pre-determined to buy from you. Advanced Strategy for Premium pricing
- 16. This strategy makes the earliest part of your work more challenging but ultimately: • Permits MUCH higher prices, • Makes selling and all your work easier, • Dramatically elevates your income. Blatant Commercial Plug. Strategies on how to identify your ideal client is a cornerstone of GKIC’s Magnetic Marketing.
- 17. Why are they buying?
- 18. Most business people learn about features and benefits, and conversion of product features to consumer benefits. None of this is very useful unless linked to the user’s motivations to buy.
- 19. You cannot expect much price elasticity from product features and benefits EVEN IF those are superior to competing products.
- 20. If you are asking features and benefits superiority to raise your prices and profits, you’re asking a mule to lift you into the clouds like a helicopter. Even if the mule tries and leaps as high as he can, he’ll get you only slightly off the ground.
- 21. “Most sales are lost because the salesman presented his product before he knew what motivated his prospect.” “If the secret of selling is to appeal to this prospect’s motivation, your first task must be to find out what that motivation is.” Harry Browne
- 22. The other mistake commonly made is assuming the prospect sees the correlation between your offer and his motivations . . . . . . without it being clearly spelled out and hammered home to him, for him.
- 23. For example, a chief motivation for seniors to buy hearing aids - at prices higher than they’d have ever guessed - is NOT to hear better; it is to avoid appearing addled to their adult children so that they are not hurried into the nursing home, where they’ll be safer.
- 24. For example, a chief motivation for a sales professional buying an improvement course, success training or investing in a business opportunity is to get a promotion or raise and bring home a bigger paycheck so that he might get more bedroom action from the missus.
- 25. For example, a chief motivation for a man signing up for landscape and lawn maintenance services at a higher price than he’d ever have imagined paying is his intense dislike and envy of his snooty neighbor. He is buying so that his lawn will out-shine that S.O.B’s and at the neighborhood pot luck, he can rub it in.
- 26. . It’s the “so that” that matters. We can sell him a motivational “so that” for a lot more money than we can sell him a product.
- 27. The “so that” motivation is what made Dominos Pizza’s original Unique Selling Proposition (30 MINUTES OR LESS GUARANTEED) so brilliant. It sold to the chief motivation of Domino’s earliest customer base - college kids in dorms near the Dominos who, after smoking funny cigarettes, desperately wanted carbs – fast, and were too incapacitated to go find and fetch them.
- 28. The price someone will pay, and the elasticity of that price has everything to do with who he is and what his personal motivations are, and little to do with the product itself.
- 29. In many cases, price is not only more elastic - it ceases to be a consideration altogether!
- 30. Yet despite these vital facts, most marketers still fail to behave based on this information, and fail to utilize this data, in their own businesses, in their marketing or selling.
- 31. “At what price can I successfully sell my product or service?” is a poor question (in every sense of that word).
- 32. 1. Price elasticity has more to do with who is buying and why, than with what is being sold. 2. The more precision matched the “what” is with the “who” and his specific need or interest, the more price elasticity you will have. Two Principles for Premium Pricing To learn how to increase your income with premium pricing, buy “Powerful Price Positioning”
- 33. Now we'll break up into small groups of 3 to 5 to brainstorm how to use this information in your business. Afterwards there will be time to share your ideas and questions with the chapter.
- 34. Ah-Ha! Moments What did you learn today that you can use to grow your business tomorrow?
- 35. And now for the Marketer of the Month presentations!
- 36. And the winner is …. (Drum roll please!)
- 37. The next challenge is . . . Find out why your clients buy your product or service then leverage that data for a higher price offering
- 38. Marketer of the Month Participation Put into action this month’s lesson by doing the “challenge”. Be bold! Be brave! Email me at least 3 days before the next meeting date so I put you on the schedule. Be prepared to give a 3 – 5 minute presentation -- what you did, the feedback and results. Bring samples to show the chapter.
- 39. Remember, you lose 100% of the times you don’t try! Challenge yourself! Implement! Learn a new skill and increase your income by doing it!
- 40. What’s New! Marketing Asset Workshop – 9th
- 41. What’s New!
- 43. What’s New!
- 44. Plus You’ll also receive: • The “New Member No B.S. Income Explosion Guide” and CD • The “Income Explosion FAST START Guide” • Webinar: “The 10 Big Breakthroughs in Business Life” by Dan Kennedy • Webinar: “The Essentials to Writing Million Dollar Ads & Sales Letters BOTH Online and Offline” by Bill Glazer • Webinar: “The ESSENTIALS of Productivity & Implementation for Entrepreneurs” by Lee Milteer
- 45. “People often say that motivation doesn’t last. Well, neither does bathing – that’s why we recommend it daily.” Zig Zigler
- 46. Mark Your Calendar! Our next meeting is on Wednesday 9th December “How to sell more using fun, interest and imagination”