What about price???

In my last post, workshop announcement checklist for coaches I suggested that including a price on your 1st tier promotion for a workshop (or service) isn’t necessarily a given.

(Quick explanation of tiers: if 1st marketing tier = announcing the workshop in your newsletter, the text might link to a 2nd tier marketing tool such as a landing page on your website.In an offline example, the 1st tier could be a rack card and if it tells people to call for a free consultation, the free consultation is your 2nd tier.)

When deciding whether or not to list price on a marketing tool, the factors to weigh include:

  • is there a 2nd tier? If you are sending someone somewhere for more info, you could hold back on listing the price and use people’s curiosity to drive them to the 2nd tier.
  • is price your best selling feature? Is it what separates you from the pack?
  • experience – have your clients told you that they are specifically attracted to you by your price (high or low)

In a recent article by Kevin Lee, for ClickZ, (Feb 20, 2009) he gives readers a few more things to consider about using price as an incentive to get people to move from the 1st tier to 2nd tier (he’s specifically talking about attracting clicks for pay for click ads that drive people to 2nd tier, which might be someone’s website or a landing page). He writes,

Price may seem like the obvious choice as an incentive to click, but price is a dangerous area for many marketers. Before including pricing in your ads, consider the following:

Your brand position may not be as a price player in the market. An aggressive price may actually convince people to look elsewhere. If you compete on other variables, price can be a dangerous incentive.

Sometimes people prefer to pay a bit more if they believe there are additional service benefits. Buyers may have been burned in the past by lowest-price providers and the simple mention of a price may cheapen your image.

If you can’t win the price war, why start it?

Do you want a price shopper as a customer? Some studies (and some evidence I’ve seen from clients) show they have the lowest predicted lifetime customer value (i.e. they are always shopping for price).

So you need to think about your brand, and about what your clients need / expect from you. Everyone’s answers are different.

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