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Brian talks about Dan Kennedy’s list of 9 ways people fail at pricing in business from his Price Strategy book.
Transcription
Pricing strategy, the smart way.
Hi I’m Brian Pombo, welcome back to Brian J. Pombo Live.
Let’s talk about pricing strategy, shall we?
Because every business, if you’re selling stuff, you got to price things. If you’re pricing things it’s based on something.
Now there, I’m setting aside all the businesses that have very strict rules on how to price things. I understand if you’re in those industries, there are certain things it’s legal you’ve got to follow.
There are ways around, those are all the things that everyone is stuck in. But I’m not gonna get into the details, because that goes a little bit deeper. We’re not going to hit on that right now.
What I want to hit on is the general idea of pricing strategy, or my favorite books on this, and I’ll give you a review of it sometimes the no BS Price Strategy. This is by Dan Kennedy and Jason Maher’s.
Excellent book on this, like I said, I’ll go into more depth on this book in the future. And I’ve talked about it in the past, it’s excellent, it’s my favorite book on pricing strategy.
So when you’re sitting down and you are either pricing things for the first time, or you’re reconsidering your prices, and saying, you know, maybe I can go a little higher, or maybe my stuff isn’t cheap enough, you got to think about these types of things.
And my one of my favorite things in this book is right off the bat chapter one first page in the book, which is technically page three, but it’s the first page of the first chapter.
This is by Dan Kennedy in the chapter titled price and fee failures. Okay, there’s many ways to fail at price strategy. Here’s a short list.
So there’s nine things I want you to think about this. And whether you’re doing these things or not the first one right off the bat, number one, pricing by textbook formulas, industry norms, or other standard means.
Is that how you came up with your prices?
That’s a very common way that many people come up with their prices.
Number two, excess concern about competitors lower prices.
Once again, this is something that people fall into over and over again, I talk about this in my book, 9 Ways to Amazon-Proof Your Business.
If you’re consumed with competition, go get this book. It’s a short book.
This is a thicker book, this is a thin book, it’s a tiny little book that I wrote, you can get a free copy at AmazonProofBook.com.
But I’ll continue with Dan Kennedy, the number three, this is these are the ways to fail at pricing, attracting customers who buy by price.
So if their main focus is price, when they’re deciding whether to buy from you or not, that might be a huge mistake for you.
Not always, but it can be a huge mistake.
Number four, predetermine belief system about what they’ll pay. Do you think you know what they’ll pay without having actual proof without having tested the limits on how much or how little they’re willing to pay for something?
That’s a big one.
Number five, permitting apples to apples comparisons. If you’re comparing things, apples to apples, and there’s a specific, there’s a specificity to that, and we’ll talk about that in the future. But that’s a real danger.
Number six, insufficient different differentiation.
Have you not made clear how different you are from perceived competition from perceived other options, for the same solution, whatever the solution is that you’re providing?
Number seven, not offering premium price options.
Okay, not having the option for premium price. I’m not saying you don’t have lower price things. But do you not also offer a premium price?
That can be a huge, huge problem.
Number eight ignorance or stupidity about business math.
That’s something we talked about a lot here. Math is really one of the main things in business math is just the concept of, do you know how to increase numbers just by switching around how you look at things. That’s pricing in a nutshell.
Number nine poor self esteem, business esteem or feelings of not deserving more.
So do you have something deep down that’s keeping you from raising prices because of something personal. Because you think that your business shouldn’t make that much or you shouldn’t make that much that once again, these are this just a shortlist.
These are nine things that he talks about right off the bat in this book, and goes into more depth later on in the book. But I mean that just talking about textbook formulas, many people would buy, I know I did, I bought this looking for a formula on how to do price strategy.
He doesn’t offer that he offers a way of thinking about it differently. And this book actually changed my entire perspective on business and took me in a direction.
More of the Dan Kennedy’s of the world, and the Jay Abraham’s and all these people that discuss business more in terms of very clear black and white principles, and also using direct response marketing, which is huge difference.
If you haven’t looked into these types of things, you should look deeper. Start with my book, check this out.
I also give you other places to go. I think I also mentioned this book in this book, because it’s been such a huge impact on my life, looking at pricing differently can dramatically change your business, just that one idea of changing your prices without changing anything else can change everything for you.
Hopefully, all that makes sense to you. We’ll go into more detail in the future. But that’s just a little taste for tonight.
We’ll be back tomorrow. In the meantime, get out there and let the magic happen.