This week, I was witness to a sales ‘train wreck’ that I thought I would never see. Where the ‘value’ of a product was so cheapened as to make me, and I’m sure others, to actually question its true worth. We have seen it all before, but it is generally reserved for late night, or, early morning infomercials and not by what I thought were, but obviously are not, true professionals.
Let me spell it out for you using an example. Let’s pretend that my wife is in a pottery class and she and her friends have done 100 flower vases and further, they want to sell these vases for $25.00 each. Me, because I am so very generous and want to see her have great successes, (you know happy wife equals happy life) offer to bundle her vases with my deluxe business program at no charge. The regular price for the business program is $5,249.00. On top of that, I have a good friend that has written a ‘how to guide for success’ and he has offered to piggy back it with my program adding a further $25.00 value and a life coach is willing to do a consultation with a basic program free of charge which adds a further $250.00 of free services. Further, a florist has offered to give us 100 gift certificates worth $75.00 each for fresh cut flowers and again, at no charge. I now take this product bundle to market, but make it only valid for the next 12 hours. In other words, you spend $25.00 and get $5,599.00 of FREE products and services. Did I mention that I have already signed up clients for my next class at the regular and only price?
What has just happened? For starters, one would have to start wondering one of two things; first, is my program, the life coach’s consultation with basic program, the cut flowers and the guide for success as a bundle actually only worth $25.00, or, secondly, is the vase so special that it is actually worth $5,599.00? What about all those people that have already registered, how are they going to feel knowing that they could have gotten my program for the price of a $25.00 vase, instead of paying the $5,249.00? How are they feeling right now? Where is my credibility and integrity at this point? Why would anyone at this point take any advice from me on how to build and grow their business? They could certainly get advice on how to give away their business because that is what I am doing with mine as per the above example. As business people, we get enough external pressure from others about pricing and perceived value, so why are we doing it to ourselves?
I have determined that my program is worth $5,249.00. Why would I charge any less? Why would I cheapen it to the level of a common commodity? The bottom line is, if it is worth X then X is what you charge. If your prospects see that X is fair value, you will never guess what will happen? Correct, they will pay X. If they do not see the value, then move on. They are not and further, you don’t want them as a client.
Does anyone want to question that true sales professionals are the minority?