I just received an incredible offer from Smart Money Magazine.
Why? Because apparently I am a “Professional” and that entitles me to the “Professional Rate.”
And what does that get me?
You’re not going to believe this … the normal cover price of Smart Money Magazine is $319.00 when it’s bundled with 52 Weekly issues of Barron’s (another magazine to help me manage my money). BUT because I am a “Professional” I can get them both for only $11.00!
That’s a savings of over $308.00!!!!!
How in the world could I pass this up … after all I am … a “Professional”!
So that got me thinking ….
What if I followed their advice? What if I discounted the cost of my services by 96.5% … think of how much business I could have?
Yes that’s true, I would be slammed with work … but I wouldn’t be making any money.
Hmmmmmm … I’m not sure if that’s such a smart idea?
Well, then maybe I should over inflate the price of my services and charge 96.5% more than I normally do, and then discount the hell out of the price so that people think they’re getting a real deal?
Hmmmmm … that might work … but are people really not that smart with their money?
Besides wouldn’t people see through that deception?
3 Lessons To Learn:
- Don’t devalue your services. If you believe your services have value, help your customers see the value and how it will help them solve a problem or reduce their pain.
- Don’t try to lure customers by cutting your price, especially by 96.5%. It sends the message that your product is obscenely overpriced or that your customer is ignorant. No matter which way you look at it … you loose.
- Don’t lie to your customers … if the true value of your product is $11.00 charge them $11.00. If you don’t make any money at that price level then either change your price or improve your product so that you can sell it at a level where you can make a profit.
And remember …
The next time somebody wants to offer you the sun, the moon, and the stars for the price of a cheap telescope …
Look somewhere else to invest your money!
Great blog. I see people in my industry always trying to work a deal, and you know what they say “YOU GET WHAT YOU PAY FOR” and then you have to pay again to fix it.
Stay true to your yourself and your business.
Thank you for keeping my business in tune.
Scott Robinson, CEO