June 18, 2010

Reader Dialogue: Value-Based Offers and No Discounting

I enjoy having conversations with people who want to implement my BE DiFFERENT Practices. Jordan owns CJS Music, an on-line music lesson business. He is looking for advice on how to create a package without having to price discount. Here’s our latest exchange…

“Roy, We discussed a few weeks ago about how I could add more value into my services instead of discounting. I came up with a 25 lesson package that will include printed music flash
cards, a monthly report card from the teacher (me) and a free admission to one of our masterclasses during their studies with us. What are your thoughts on this?
Best, Jordan
PS I really like the twitter posts you are making very informative.”

My reply: Jordan, You are definitely on the right track. Make sure the attributes of your Package (i.e. the music cards etc.) are highly valued by your target customers. If not, you will have a clever Package that won’t resonate with customers. Test it . Do some Market Research to make sure the design is right.

The other point here is that if customers are not impressed with the overall value of the Package, they will not be terribly willing to pay you a Premium Price, right? Remember we don’t want to discount. Set your price and again do some testing with your target customer group for feedback. Once you are happy that your price point is ‘just about right’ then introduce the Package.

Be prepared to tweak it though if the market surprises you. Keep me posted.

Jordan is thinking about this the right way. Nicely done. Oh, by the way check out his ONLY Statement. Great job!

Cheers,
Roy
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Posted 6.18.10 at 07:00 am by Roy Osing | Read Comments (0) | Leave a Comment