Brian talks about Dan Kennedy's list of 9 ways people fail at pricing in business from his Price Strategy book.
https://www.youtube.com/watch?v=N1q_TKTNY48
Transcription
Pricing strategy, the smart way.
Hi I'm Brian Pombo, welcome back to Brian J. Pombo Live.
Let's talk about pricing strategy, shall we?
Because every business, if you're selling stuff, you got to price things. If you're pricing things it's based on something.
Now there, I'm setting aside all the businesses that have very strict rules on how to price things. I understand if you're in those industries, there are certain things it's legal you've got to follow.
There are ways around, those are all the things that everyone is stuck in. But I'm not gonna get into the details, because that goes a little bit deeper. We're not going to hit on that right now.
What I want to hit on is the general idea of pricing strategy, or my favorite books on this, and I'll give you a review of it sometimes the no BS Price Strategy. This is by Dan Kennedy and Jason Maher's.
Excellent book on this, like I said, I'll go into more depth on this book in the future. And I've talked about it in the past, it's excellent, it's my favorite book on pricing strategy.
So when you're sitting down and you are either pricing things for the first time, or you're reconsidering your prices, and saying, you know, maybe I can go a little higher, or maybe my stuff isn't cheap enough, you got to think about these types of things.
And my one of my favorite things in this book is right off the bat chapter one first page in the book, which is technically page three, but it's the first page of the first chapter.
This is by Dan Kennedy in the chapter titled price and fee failures. Okay, there's many ways to fail at price strategy. Here's a short list.
So there's nine things I want you to think about this. And whether you're doing these things or not the first one right off the bat, number one, pricing by textbook formulas, industry norms, or other standard means.
Is that how you came up with your prices?
That's a very common way that many people come up with their prices.
Number two, excess concern about competitors lower prices.
Once again, this is something that people fall into over and over again, I talk about this in my book, 9 Ways to Amazon-Proof Your Business.
If you're consumed with competition, go get this book. It's a short book.
This is a thicker book, this is a thin book, it's a tiny little book that I wrote, you can get a free copy at AmazonProofBook.com.
But I'll continue with Dan Kennedy, the number three, this is these are the ways to fail at pricing, attracting customers who buy by price.
So if their main focus is price, when they're deciding whether to buy from you or not, that might be a huge mistake for you.
Not always, but it can be a huge mistake.
Number four, predetermine belief system about what they'll pay. Do you think you know what they'll pay without having actual proof without having tested the limits on how much or how little they're willing to pay for something?
That's a big one.
Number five, permitting apples to apples comparisons. If you're comparing things, apples to apples, and there's a specific, there's a specificity to that,