How to overcome price resistance from your customers (part 1)

looking at a price tag
Image by bradleygee via Flickr

How high is too high?

Are you selling information products that have a price tag that causes sticker shock when potential buyers see it?

If so then this post is just for you.

Many times the only thing that’s keeping you from making a sale of an information product is the price.

More specifically your high price.

Even though your potential customers may very well be in need of what your product has to offer, the sticking point will generally revolve around their out of pocket expense.

Well there’s no need for you to worry about losing the sale because of a high price anymore.

Because today veteran copywriter Bob Bly will explain how you can easily overcome price resistance.

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Fortunately, there are a number of promotional techniques that can help us overcome sticker shock and get people to pay the hefty prices we are asking for these specialized print, fax, or Internet information services:

1. Make an apples-to-oranges comparison. Don’t compare your newsletter to another newsletter; compare it to another information resource, such as private consultation or expensive training. Promotions for Georgetown’s American Speaker compare the $297 price to the $5,000 a top speechwriter would charge to write just one speech. Leeb’s Index Options Alert notes that the $2,950 it charges for its options-trading fax service is like paying a 2.95% fee on a $100,000 managed-options account – and that it’s actually lower than the total fee such a managed account would charge.

2. Spread out the payments. Rodale and Franklin Mint are well aware of the sales-closing benefits of offering several smaller payments vs. one large lump sum. One publisher of financial fax advisory services costing thousands of dollars found offering subscriptions on a quarterly basis reduced sticker shock and increased sales. If yours is an Internet service, consider offering it for so much a month with credit card payment on a till forbid basis. After all, which sounds better – “$19.95 a month” or “$240 for one year of service”?

3. State the price in terms that make it seem smallest. Even if you want full payment up front, state the price in your promotion in terms that make it seem smaller. A $197 annual subscription, for instance, gives the buyer access to vital information for just 54 cents a day. Warning: Divide the price by length of service or subscription, but avoid a price-per-book or price-per-page comparison. Reason: Specialized information products always have a higher price-per-page than the trade books or periodicals with which the buyer will invariably make a comparison.

4. Value the component parts. If you are selling an options trading course for $200, list the individual elements and show that the retail prices of each (videos, workbook, telephone hotline, Web site access) add up to much more than $200 – therefore, the course buyer is getting a great deal. Even better: Position one or two of the product elements as premiums the buyer can keep even if he returns the product or cancels the subscription. Offering “keeper” premiums usually increases response. Example: Instead of selling your 8-cassette audio album for $69, say it is a 6-cassette album for $69, then position the other two cassettes as premiums.

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In part two of this series you’ll learn about the other four resistance beaters.

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