In the world of sales, particularly in the service industry, pricing can be a game-changer. The approach you take can significantly impact your business's success. Let's explore a pricing strategy that I have used that draws from various experiences and lessons learned from my early days getting started, known as the "Portfolio Promo Kit Pricing" strategy.
1. Setting the Base Desired Pricing
Imagine your perfect customer in a stable moment, willing to pay the top dollar for your services. This becomes your base desired pricing. It's essential to know your ideal value in the market.
2. Creating Momentum and Cash Flow
To kick-start your business or sales team, sometimes you need quick cash flow. This is where strategies from early sales experiences come into play.
a. The Kirby Approach: Starting High, Offering Discounts
I remember one of my first sales job selling Kirby vacuums? Starting with a high price and gradually offering discounts and installment options until closing the deal can be effective. It's a strategy that aims to hook customers with a seemingly high value and then make it more affordable.
b. The Rainbow Vacuum Approach: Avoiding Price Reductions
Contrastingly, Rainbow Vacuums taught not to lower the price. Instead, they emphasized the value of the product and used bonuses and added value to justify the cost. This way, the perceived value remains high even if the price doesn't drop significantly.
3. The Reality of Pricing in All Industries
Across industries, you'll find products and services at different price points. Quality and marketing strategies often influence these price differences. Understanding where your offering fits in this spectrum is crucial.
4. Portfolio Promo Kit Pricing
Now, I have with this experience and much more in business marketing and sales, developed a unique approach – the Portfolio Promo Kit Pricing.
- Start with your base desired pricing for the service.
- Launch it with a significant discount to attract a quick influx of 10 to 30 new customers.
- Generate reviews and build trust quickly.
- Then, transition to full pricing.
- As you are in full price, have ready discounts and smaller services that you can add, if needed and when needed, to close the deal.
5. The Power of Adaptation in Sales
One key to success in sales is the ability to adapt. Always listen to your customers before deciding on your pricing strategy. Here's how:
- If a customer expresses concerns about the price, consider offering a discount.
- If they need persuasion, show them added value by adding bonuses.
- Sometimes, customers are willing to pay the full price because you've built a history of trust and reliability they they just want the same results that your are for telling that can happen.
In conclusion, your pricing strategy should be dynamic and adaptable. It's a blend of high and low pricing tactics, shaped by your customer's needs and your market positioning.
Remember, pricing isn't just about numbers; it's about value perception. With the right strategy and the ability to listen and adapt, you can find the sweet spot that maximizes your sales and builds lasting customer relationships.