Price Positioning… Use it To Self Select Your Customers

I Am Rich

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So brand perception determines how much you charge when planning your new product launch marketing strategy.

Conversely, you can use the price point to position your product in the market place. A high price will see the tire-kickers disappear and leave you with the people with money who are more likely to value your offer.

But a low price will get you a toe-hold in the market place, put buyers into your system and give you the opportunity to up-sell once you’ve got your prospects across the threshhold

Let’s take a look at three different offers in the online tele-seminar/webinar market

  1. Go To Meeting
    Undoubtedly the market leader and well worth considering if you’re involved in a big product launch. You can have 1000 attendees but at a price – $499pm. If you’re only expecting 500 guests the price drops to $399pm.
  2. Instant Teleseminar
    I have used these guys. They max out at 3000 attendees at a price of $197 so their price point is super-competitive. You pay just $67 pm for 500 attendees.
  3. GVO Hot Conference
    500 attendees for just $99 pm- 300 attendees for just $44.99 pm and 50 for just $8.97pm

When doing a product launch, webinars are a great way to build the conversation, show like-ability, and demonstrate your ability to teach as well as elicit objections that may be masquerading as questions – And no, those are not affiliate links

The point is that each product is differentiating itself on its price. It doesn’t matter how many bells and whistles one company can offer if you cannot afford the price. This is therefore the determining factor and your clients will self select accordingly.

Focus your next product launch on the 20% of the market that has 80% of the money. These prospects will consider the benefits that you have to offer first and foremost. The price will be less of a concern. It represents a low risk.

You may attract the periphery to you core market by introducing a three pay option but this represents a high risk strategy. Your price positioning strategy therefore needs careful consideration.

When planning a product launch, far too many marketers relate the price they want to charge to what they think is reasonable. I’ve got news for you. It’s your core market perception that counts…

Get back to me with your thoughts. Are you leaving money on the table?

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Rory Ramsden