05/13/2024
Me: âWhy is your product priced at $99?â
Client: âBecause thatâs what everyone else in our category is doingâ đ
Last week I got to meet with one of our clients who started our partnership with BME end of last year.
Theyâre a startup in the wellness space and their product is truly unique and has a lot of potential to change their little slice of the industry.
When they came on, I quickly observed that their pricing (in my opinion and experience) was far too low.
ButâŚ
âŚbecause Iâve realized over the years that you canât change everything about a business at onceâŚ
âŚand because Iâve learned the hard way that there are plenty of times when my first instinct isnât always correctâŚ
I decided to wait and make sure we got two foundational things handled before I dug into their pricing.
The two things were:
1 â Their core branding campaigns
2 â Their conversion campaigns
Once my team and I got their brand reach where we needed it and got sales consistent over the first 3-4 months, I then realized it was time to have the pricing conversation.
Our client had priced their product at $99 âbecause thatâs what other products in the category were priced at.â
And while that can * sometimes * be an effective path, it rarely is.
When I met with my client last week, we took time to actually break down the value that their product provides.
It saves dozens of hours of time for their customers every month, and the peace of mind value behind their product is even greater.
We quickly discovered that doubling or tripling their price would not only be wise, but it would also put my client in the position to be able to dominate their market in a whole new way.
As we talked through the price increase, I could definitely feel and hear their fear around raising their prices.
I reminded them that if they doubled their prices and sales volume dropped to half of what it is now, they would still be winning in a big in profits and overall business leverage.
I also let them know that we wouldnât simply âflip a switchâ and change pricing. My team and I have taken plenty of clients through raising their prices, and there is an effective methodology that we use to make sure that all the bases are covered.
When our clients partner with us for marketing, we look at their marketing, but we also look at:
â Their profit margins
â Their current brand equity and performance
â Their available capital to invest in growth
â Their delivery of their product
â And many other facets that impact long term strategic marketing
Here at BME we know that marketing is more than just a landing pageâŚ
Itâs more than the right ads in your ad accountâŚ
And itâs definitely a lot more than âfunnel hackingâ something that works for another company.
Marketing is all about displaying the value that you create for your current customers.
This way your potential new customers can identify themselves with the same people that you serve on a daily basis.
This is why I often say âMarketing 101 is delivery a great product or service with an excellent customer experience.â
When you get delivery right, marketing is easy.
Donât let some loud mouth on the internet tell you that youâre just one funnel awayâŚ
And donât let some âcoachâ whoâs never scaled a business like yours tell you how their âsuccess formulaâ is all you need.
Those are sure fire ways to go broke fast and hurt a lot of people along the way.
Iâve tried those paths.
Iâve failed and hurt a lot of people in past endeavors.
And those paths are NOT what you need to succeed.
No matter who you choose to work with in your marketing, I want to encourage you to find a true partner for your marketing.
Someone that is willing to deeper and help you uncover all the opportunities your business has as it relates to your marketing.
Long term relationship building with your audience pays a lot better than cheap overused tactics.
If you do need a marketing partner, you know how to find me.
To your success,
Gabe
