Cost is a Fact, Pricing is a Policy

grand duché fronsac 2007

Grand Duché Fronsac

 

It’s a fact. You can chose the price you sell your product for but the cost to produce it will remain much the same.

 

It’s all about your credibility, authority and marketing strategy

 

I live in France and always wonder how anybody can make money selling bottles of wine for less than $5 when the costs to produce it is essentially the same as producing a $25 bottle.

 

It takes the same amount of time, the grapes have to be picked in the same way and the production process is the same. The only difference is the cost of the land on which the vines are grown. The ‘terroir’ on which the grapes are grown changes hands for millions in St Emillion

 

Yet just down the road in Fronsac the wine is almost as good but the chateaux do not spend so much on marketing so they are less well known and therefore cannot command premium prices.

 

 

To put that in the context of a product launch. If you have not positioned yourself as the trusted authority in your niche, then you have little hope of selling premium price products

 

The choice is yours…

 

Either… Just release your product onto the market in the hope that it will be successful if you advertise and promote it well. By doing it this way, you start to engage the market after your product becomes available. It’s only now that you start to overcome the fear of making that buying decision

 

Or… Do a product launch and engage your audience in your launch conversation before they are even aware of your new product. This is the Apple inc product marketing strategy where they build up excitement and anticipation to such an extent that their army of raving fans are prepared to lay money on the table almost without a second thought.

 

If you create a product that your core market is desperate to buy, they will pay a premium price to get their hands on it.
But you have to be a recognized thought leader too just like Steve Jobs so your launch plan will include a series of online events in which you make your clients feel good by telling your story, introducing layers of proof and then empathizing with them

 

There is no hard selling involved. Rather, when you finally open your shopping cart on launch day, you simply invite them to take advantage of the amazing value you are offering.

 

The guy at the counter of the Apple store selling the iPad2 isn’t really selling them, is he?

 

The customer knows that there are 100s of people behind him just itching to get their hands on one if he walks away. It’s a case of buy now because you may never have such a great opportunity again. This is your goal when you do a product launch

 

Find out how product launch marketing can be applied to your business now, whether you are online, offline or somewhere in between, just contact us to set up a good time for a phone consultation.

 

Gratis, no cost and no commitment on either side…

 

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Rory Ramsden