As customers, we are often quick to ask the question, “How much does it cost?” That’s what we want to know. Get to the bottom line. Why? Why do we go so quick to the price? The answer – The Value Equation.
The Value Equation is this … Does the Perceived Worth of an item equal its Actual Price?
We beg for the price because we are always at least subconsciously calculating Perceived Worth on everything we see. We’ve been doing it our whole adult lives. We do it shopping for groceries. We do it shopping for tools. We do it shopping for clothes. As we walk the store we attach a Perceived Worth to everything we see. (If we don’t want it, the PW is zero. If we might want it, we attached a price to it and check to see if we are right.)
When the Perceived Worth equals the Actual Price, we put the item in our cart.
The surprise is often in finding our Perceived Worth is far higher than the Actual Price. The first question we usually ask when that happens is, “What’s wrong with it?” or, “Is this marked down?” Sometimes we think to ourselves, “Wow, it must not be as good as I thought it would be.” Before we buy the product, we have to answer those questions satisfactorily.
That’s why it is easy to under-price yourself to bankruptcy (or at least leave serious dollars on the table.)
The other problem is when your Perceived Worth is much lower than the Actual Price. You either totally dismiss the product as being “out of my range” or you wonder what you missed in your evaluation of the product.
Take, for example, the SPOTLIGHT ON MARKETING & ADVERTISING class I am offering. I have to find that sweet spot of a price that fits what you believe a class like this should be worth.
I start by taking cues from what other similar programs charge. For instance, Bob Negen’s Whizbang Training two-day Retail Success Summit this summer is currently $997. My buddy Tim Miles just announced a one-day workshop with Roy H. Williams, himself, for $1250. (By the way, I highly recommend both programs, and, no, I don’t get any kickbacks from these links.)
My workshop is $250* for a half-day —similar to Bob’s price for two days. Some of you will look at the price and see that it is about what you’d expect to pay for other, similar types of training. Some of you will look at the price and ask, “Where’s the value? What do I get in return?”
So I also look at the benefits you will get from the program. For instance, in this four-hour program you get:
- Eight ways to market your business with little or no money at all
- How to get free publicity from the media
- How to craft a message that gets noticed, remembered, and acted upon – three things that are incredibly hard to accomplish in today’s fractured, over-saturated media world
- How best to use the media of your choice (and tips on how to choose the best media for your business)
- Four ways to generate more Word-of-Mouth advertising than you ever thought possible
- One year of advertising support including help with your message, your campaign, your media buys, or wherever you have questions or need advice.
- Half-rate discounted tuition for any future programs I offer through Jackson Retail Success Academy™.
Some of you will still balk at the price. That’s okay. I know I won’t convince everyone.
Some of you will think that seems like a pretty fair trade for $250 and four hours of your time. You’ll sign up now for the class on Tuesday, June 20th.
Others will wonder why the price is so low for all that you get. Most of you in that frame of mind have either been to one of my programs before or live in a city where prices for stuff like this are just a bit higher than they are in Jackson. Remember, Helping Others is one of my Core Values.
-Phil Wrzesinski
www.PhilsForum.com
*PS If your business or you personally have taken one of my workshops through the Jackson Retail Success Academy™, you qualify for the Half-Price Alumni rate of $125.
PPS Why the half-price tuition for JRSA™ alumni? I believe strongly in continuing education. Now that I make my living speaking and writing, I am reading more blogs and books on speaking and writing, and I am attending workshops to learn all I can in those fields. I want to encourage anyone who takes one of my workshops to come back for refreshers or other programs, or maybe send a staff member to learn more. Plus, you’re always looking for a better deal. You know these classes are worth it at almost any price. Half-price just makes you feel good.