Posted by: Marty Fahncke | March 30, 2013

Lessons in pricing from a master

Ron Popeil is a master salesman.  A man who has sold over a BILLION dollars worth of products pretty much single-handedly, he knows how to create incredible value in the mind of the consumer. His products were simple, effective, saved you money, simplified your life (Set it and forget it!) and of course they were great values. The most important part of this is great value.

For example, below is a short video of his Showtime Rotisserie “Call To Action”. Before getting to this point, Ron has spent 10 minutes wowing the audience with all of the incredible ways the Showtime can improve their lives. He’s compared it to other (expensive) appliances, compared it to the costs of going out to dinner, demonstrated how efficient it will make their lives, and in many other ways, pretty much convinces the audience that it’s probably worth $400-$500 for the appliance.

Now watch what he does…

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You see what he did there with he pricing? He made it seem like you would be crazy not buy buy one at such a low price!

And the multi-pay? His 4 payments of $39.95 strategy is another proven winner when it comes to pricing. First of all, it make the actual price feel much less, and second, it helps break down the overall purchase into manageable financial “chunks”. Buying a Showtime Rotisserie is almost a no-brainer by the time he’s finished.

So how does this apply to your business?  A few lessons here:

#1 Make sure you are creating massive value in the mind of the customer before bringing up the price

#2 When pricing your products and services, make sure that the actual selling price is below the perceived value price (but high enough to make a tidy profit)

#3 If your products or services are expensive, see if you can create a multi-pay program to make it easier for your customers to buy

#4 (And I’ve mentioned this one many times in my speeches and writings) DON’T BE AFRAID TO ASK FOR THE SALE. I’ve seen time and time again where a business owner isn’t confident enough in their product, service, or pricing to boldly ask for the sale. You’ve got to be like Ron, and be confident in your delivery.

Confidence = Customers.

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