Winning Customers

Customer Value Proposition

 

Effective Pricing

Win more customers by using good pricing strategies and principles

Vadim Kotelnikov

Vadim Kotelnikov, founder of 1000ventures - personal logo  Vadim Kotelnikov

   

  

 

Highlights

The best price is the one that provides you with the most long-term profits. When you price intelligently, you have a sustainable advantage over most of your competitors.

 

 

 

Warren Buffett advice quotes

Price is what you pay. Value is what you get.

Warren
Buffet

 

 

Price in Terms of Value

Sell differentiated value and the overall exceptional experience associated with what you have to offer.  

Price in terms of value rather than cost. People will always pay  for something they love, that benefits them outstandingly, or that solves as problem.

  What Makes People Buy Customer Value Proposition Emfographics Pricing Sell benefits Emotional Marketing Winning Customers Vadim Kotelnikov Customer Value PropositionL Benefits, Emotional Appeal, Price

 

 

 

 

 

 

Find the Golden Mean

The best price is always the one that provides you with the most long-term profits.

Price in terms of value rather than cost. Cost-plus pricing is  worst choice. When you start pricing more intelligently, you will have a real advantage over most of your competitors.

Don't price neither to high nor too low. If you price your product / service too high, many prospective customer will choose not to buy from you. If you price your product / service too low, people may get suspicious of a "too good to be true" offer and decide to avoid a risky purchase. "Youíve found market price when buyers complain but still pay," advised Paul Graham.

 

 

 

 

Provide Alternative Offers

Offer alternate products or services when you show the price of a product or service. Choices allow the buyer to make logical sense of the price.

Provide a lower and higher offer on each side of your main offer.

Menu pricing is an effective approach. Organize your offers on a menu with pricing lowest to highest, or vice versa.

=> Example of Price Negotiation

 

 

 

 

Marketing To the Subconscious

A higher price conveys a premium product experience, causing a powerful subconscious emotional mix of self-esteem, recognition and joy in consumers... More

 

 

 

 

Internet-powered Revenue Models

Freemium is a pricing strategy by which a product or service (typically a digital offering such as software, media, games or web services) is provided free of charge, but money (premium) is charged for advanced features, functionality, or virtual goods... More

 

 

 

 

 

High-Performing Price Tags

Extensive price tests show that .99 outperform the next even number. The following price points lead to the highest purchase rate:

19.99  ▪  49.99  ▪  79.99  ▪  129.99  ▪  149.99  ▪  179.99  ▪  199.99

 

 

 

Free or No-fee?

You may wish to offer complimentary products, services, and other benefits to your customer. Should you call them "free" or "no-fee"? Call them "no-fee" wherever possible. Why? Free and no-fee look, sound and feel different. "Free" suggests there may not be a great deal of value. "No-fee" suggests that there is customer value, but you are giving it as a gift.

 

 

 

Raising Prices

There is no victory at bargain basement prices," advised Dwight D. Eisenhower. Don't be afraid to increase your prices or fees If your price-point became unsustainable for a good reason.  If you create great, innovative and differentiated value ‒ people will pay for that. Raise your prices moderately because any large increase may be perceived as excessive. In case a moderate increase doesn't meet your sustainability goals, think about splitting your product or service into different elements.

 

 

 

 

 

 

Vadim Kotelnikov advice quotes

Customer, like a mussel, hides inside his shell when a noisy ad attacks, but may open up to a soft friendly offer.

Vadim Kotelnikov

Vadim Kotelnikov, founder of 1000ventures - personal logo    Business e-Coach    Innompic Games icon