christiescott

Posts Tagged ‘pricing’

What is Stopping Your Prospects From Buying? Investing? Joining? (and it’s not what you think)

In Uncategorized on April 2, 2010 at 10:00 am

What would stop someone from joining a gym?

What would stop them from giving a donation?

What would delay them from making a decision to start a project?

Is it really the “economy”? Or is it something else that is totally within our reach to change and improve?

Well, when I think about exercising today, I automatically think about how I won’t have time to exercise enough to get really fit. I start thinking, “I won’t stick with it”, “I travel too much”, “Don’t have enough time”, etc. My eyes have been opened to this by Seth Godin’s post today, here are the points he makes:

Peter Singer is famous for posing a stunningly difficult question, paraphrased as, “If you are walking by a pond and you see a child drowning, do you save her? What if it means ruining a very fancy pair of Italian shoes?” Okay, if we assume the answer is yes, then why not spend the cost of those shoes to save 20 kids who are starving to death across town or the world? There’s really no difference. Or by, extension, invest in research or development that solves a problem forever… The issues are proximity and attention.

My take is that most people would instantly save the kid, but given the choice, probably wouldn’t take the road by the pond again any time soon. We like to avoid these situations, because these situations make us uncomfortable.

It boils down to a simple question, “how much is enough?” She knows that one iPod is all she needs, but she wonders how much philanthropy is enough?  And this is a key marketing question for anyone seeking donors.

Do I have to use up all my Italian shoes? How much is my share? …and at some point, will we end up avoiding Singer’s question altogether?

If you don’t give anything to good causes, then you define enough as zero and you have no worries about achieving ‘enough’. A sad but effective strategy.

If you give money to emergencies, friends with the guts to ask and the occasional feel good moment, you’ve also defined ‘enough’ in an easily achievable way. Your gift is a reaction to inputs.

What about people who make substantial, anonymous donations to long-term causes? How do they know what’s enough? How do they decide that now it’s okay to go out for a fancy dinner and not send the money to the worthy cause instead? If the solution isn’t clear, if it’s limitless, how do they avoid the temptation of avoiding the problem by doing nothing?

Marketers at good causes have a real challenge as they try to raise money from people who aren’t billionaires. As they approach people with $10,000 or $100,000 in the bank, this fear of not seeing a limit is very real, and if it’s not confronted, they will fail at both raising the money and generating satisfaction for the donor.

The Mormon Church says, “tithe”. They say, “10% is a lot, and 10% is enough.” This is actually very smart, because they’ve created a difficult but achievable standard, a way to be a member of good standing in their tribe.

When my dad ran the local United Way drive as a volunteer, he pushed for one percent. “One percent isn’t a lot, but it’s enough.”

What’s enough? I don’t think good cause marketers need to worry so much about which number or figure they choose, but I think they need to dream hard about whether giving people comfort with a ceiling will bring in a new class of significant donors. Too many people still avert their eyes.

PS this same thinking works for marketers trying to persuade people to join a gym, learn an instrument or go on a diet… if people can’t figure out what ‘enough’ is, where the end lies, they may decide it’s not worth starting. Sad but true.

So, Seth mentions, uncertainty, uncomfortableness and I, Christie, think this may also have to do with FEAR! Fear of not giving enough, fear of failure, OR fear of not making the right decision!

IF you sell a product or service or run a non-profit, you need to see this as a HUGE roadblock to getting people to buy, spend, dedicate.

If you have an ongoing service, this will prove to affect you as people will think about all of the reasons why it won’t work, why they will fail, whether you or your company are the right choice. SO, determine a price structure, or an exact plan for people to follow, you have to define “enough” for them, you have to determine “right” for them. THEN, the decision making process will be easier.

A few weeks ago on a call, I talked to a service provider about why he is not a fantastical success. I saw there was a huge problem with his offerings to prospects: a wide open service offer, choose any of the services, mix and match totally customizable services!

This WILL cause people to DEBATE about hiring you, rather than evaluating and buying. If you define your offers very clearly, then people who are ready to buy will have a much faster process, your sales funnel can be shorter for this group, rather than pinging them around for months, possibly years and then your competitor coming up with a complete package offering and dragging YOUR buyers there! THAT’s what people want, COMPLETE packages.

So, how does this play out and affect your business?

What will you change? Improve? Implement?

My best,

C

Seth Godin says that there are two Trends to watch for:

In Uncategorized on January 4, 2010 at 2:57 pm

“Change: The infrastructure of massive connection is now real. People around the world have cell phones. The first internet generation is old enough to spend money, go to work and build companies. Industries are being built every day (and old ones are fading). The revolution is in full swing, and an entire generation is eager to change everything because of it. Hint: it won’t look like the last one with a few bells and whistles added.”

AND

“Frustration: Baby boomers are getting old. Dreams are fading, and so is health. Boomers love to whine and we love to imagine that we’ll live forever and accomplish everything. This is the decade that reality kicks in. And, to top it off, savings are thin and resource availability isn’t what it used to be. A lot of people ate their emergency rations during the last decade. Look for this frustration to be acted out in public, and often.”

We can see evidence of these. We can see the negative and positive effects already. BUT, how will YOU respond? How is your business going to serve and benefit from these INEVITABLE changes?

Tell me.

My best,

C

See me at: www.christiescott.com

Is someone DOGGING you? Should you fight back?

In Uncategorized on December 22, 2009 at 2:47 pm

Many of my clients experience the pain and sorrow of getting crushed, dogged, shown up!

Whether it is Black PR, a competitor taking a new direction that is VERY similar and possibly superior to yours, or someone taking an idea or concept to a new level, what should you do?

Should you retaliate? Should find a snappy marketing message to say, “We are still better than these guys!”?

Well, Dunkin’ Donuts retaliated at McDonald’s this year. McDonald’s came out with their gourmet style coffees, they had a HUGE branding and marketing budget of course (they ARE McDonald’s, people) and claimed their coffee is :actually drinkable” to set themselves above “other” coffee shops in their price range.

SO, Dunkin’ Donuts retaliates. They create a campaign that directly targets McDonald’s although they don’t mention the name by having billboards explaining that Dunkin’ Donuts “don’t clown around”.

As BNet points out, “counter-branding” always has the exact opposite effect from what we would want to accomplish.   Rather than positioning Dunkin’ Donuts as something special, this campaign solidifies McDonald’s in having coffee that’s arguably as good as Dunkin’ Donuts’.

“But, Christie” you exclaim, “WHAT SHALL I DO, THEN?”

Well, whether you have someone dogging you or not, you should follow the same focus:

  • Show through your product/service that your company is valuable and superior to the competition.
  • Try to be transparent to your customers/clients.
  • Find ways to share with them what makes your company/service/product SUPERIOR.
  • Without dogging the competition directly, EDUCATE them on how to choose and win with the provider of your product/service.

Have someone dogging you? Need more help? Want advice on how to phrase your marketing not shine a light on your competition, but to outshine them? Let me know,

Christie Scott

www.christiescott.com

Dynamic Pricing Ideas for your product, according to Seth Godin.

In Uncategorized on December 10, 2009 at 8:05 pm

Check out these ideas from Seth Godin. Are you releasing anything soon? Book, product, try this:

http://tinyurl.com/seth121009

My best,
Christie Scott

Follow

Get every new post delivered to your Inbox.