In the last email, we looked at charging according to the quality and skill that goes into your product. If we consistently charge at below market price, that kind of pricing will become part of our brand. If you're okay with it, there's no problem.
If it makes you feel bad, don't do it.
So that's about setting appropriate prices for your products. It's easy for me to tell you to charge more. But it takes a lot of confidence for you to stick to that kind of pricing.
It takes a lot of guts to maintain your prices, especially when the products aren't selling. Or they're not selling fast enough.
This is the time where doubts start to creep in and you start to consider lowering prices. I don't blame you. The pressure can be overwhelming. #beentheredonethat
Enter the SALE.
Introductory price, promotion price, half price, special offer, one-time price, hot sale, best deal. So many terms for what is essentially, the lowering of prices.
But there's no denying that that the SALE sign works. We all shop around for the best deals. We know first-hand how successful the sale strategy is.
But use the sale strategy too often and you'll be the sale brand. Customers will be too accustomed to paying the "sale price" that the full price won't even be an option anymore. It's an incredibly short-term strategy with long-term damage.
The sale strategy brings you short-term profits but leaves long-term damage.
So what's your alternative?
- How do you get products to constantly be sold out?
- How do some brands clear their stock in a matter of hours?
I'll explain briefly on two of the many methods that successful brands use to get customers coming to them without lowering prices.
Too much of a good thing can be a bad thing. If your products are too available, how can you create that intense longing? People want and pine for things that they can't have, or things they can't have yet.
If you create a scarcity, you're basically playing hard to get. Because there are less of your products in stock, people essentially have to compete with each other to buy.
Scarcity creates urgency. Urgency makes people take out their purses or wallets and buy NOW.
They don't want to miss out, because that will mean that they won't fit in. (Goes back to social approval in "Tapping Into Basic Desires to Find Your Angle.")
Of course, this is contingent on your products being excellent in the first place.
People are getting used to buying stuff online, but they're not feeling 100% secure yet. This is especially if the brand they're purchasing from doesn't have an e-commerce site. Customers have to pay via cash deposit or bank transfer and hope for the best.
This is also true for brick and mortar stores. Things like refunds and returns can affect the customers' decision.
You have to earn the customer's trust. This is non-negotiable. There's a lot of anxiety involved. But if you can reduce the anxiety and increase the trust, products will move faster.
I can't tell you how many times I ended up not buying from businesses online because they just look fishy.
Customers buy from brands or people that they trust. Or at least look trustworthy.
Examine the way a customer might view your brand. Are your marketing materials professional and dignified? Can a customer make a purchase easily? Is your service transparent and customer-oriented?
I know you're honest. You know you're honest. But if your customers don't know that, it'll be hard to convince them to buy.
Lowering prices is EASY. Anyone can do it. But these strategies I told you about? They kinda take considerable effort on your part.
But while the first makes you money quickly, the latter keeps you in business longer. Don't be the brand that customers ask, "How low can you go?"
Be the kind of brand that's always in demand and trustworthy. It's possible if you take the time to create the right reputation. We'll focus more on those strategies in the coming email.