How much do you charge for your product or service?
Do you charge based on the value you offer?
Based on the time and resources it takes you to produce it?
I was watching Ray Donovan the other day, a TV show about a “fixer” in Hollywood, cleaning up after celebrities and their messy lives.
There’s one scene where people are after a murder tape where you could identify the killer (a famous rapper). Obviously this rapper is willing to pay any amount of money to get his hands on it.
Enter Ray Donovan, in charge of collecting the tape from the people who filmed it. Thing is, they contacted an intermediary, a news agency and these guys are asking $2 million dollars for the tape.
Ray being the ruthless, unemotional guy he is, goes directly to the people who filmed the tape, a kid and his dad, and asks them how much they want for it.
They don’t know the agency is asking $2M.
First the dad throws out a $20k. And the kid $$2k.
Different perceptions come in different layers. But you have to uncover them.
We have the agency, higher awareness of how the “industry” works and sophistication in the subject matter (they know the tape is worth any amount of money to the killer).
Then we have the family, the kid totally unaware of what that could be worth and the dad, slightly higher awareness but still no way near the mark.
It’s a great example of what selling something to the right buyer can do for you.
Do you want to sell to to the people who know what your product is, know about your competition and are ready for you to tell them why you’re different so they can just go ahead and click that buy button?
Or do you want to have to educate your buyers on how much your product is worth, why it’s worth it that much, why it’s the right solution and why they should buy it?
That’s a lot of work.
And you could save yourself a lot of it if you target the right people.
That is, you should take awareness and sophistication into account not only when it comes to crafting your value proposition, but also when it comes to your pricing strategy and structure.
Do what you can to learn what your prospects know about the industry and how your competitors price themselves. And what they offer for it.
Then, position yourself in the sweet spot.
Then by the time people stumble on your product page, they will resonate and align with your pricing so well, that buying will be an afterthought.
Something else I’ve been doing for clients and can share with you. Just get in touch.