Yes. Sad, but true. In hindsight, I never should have answered the question: “So, why do you think I don’t have more business?” honestly. I feel that as fellow business people we have a code, an obligation of sorts to give feedback that we think will be helpful. Apparently, not all people hold this belief. My evaluation that her website could be improved was not something that my yoga teacher was ready to hear. (I learned…could be more emotional with maybe some people in the photos; a little better organised; perhaps a concise offer with pricing chart was not delivered “softly” enough.)
One minute things were fine. The next I find myself searching for another fitness and social opportunity. Which is what I REALLY want to talk with you about. BENCHMARKING.
What I noticed, is that as I reviewed my choices (fitness studio, dancing lessons, nothing, cooking course) I always came back to benchmark how this new choice compared to the yoga course. When, how long, how often, how much did it cost, how much fun is it…all aspects of the decision were made with the desire to meet or exceed the benchmark set by the no longer available to me yoga course.
I recently watched a YouTube video that talked about the value of having a high priced bottle of wine for sale. It was not that you would sell this bottle often (if ever). It was that as a benchmark, it made the next lower price seem more attractive. We like to take a choice in the middle. The video showed us a shelf with $16, 24$, and 36$ bottles of wine. The 24$ bottle sold the most. Then it showed a shelf with $16, 24$, 36$ and $62 dollar bottles. Many purchases shift from $24 to $36. Purchases also shifted up from $16. Overall, better income results are achieved. (Assuming that the contribution margin increased with the higher priced bottles.)
In conclusion, it makes sense for us to understand the benchmarks that are setting price thresholds in the minds of our customers. These include the experiences that they have while they are with us and those that they bring with them. Our Focus on PRICING study is providing information about the framework customers bring with them. The sales experience is our opportunity to understand and influence them while they are with us. Have you designed your product line and sales experience to ask for and respond to your customer’s pricing benchmarks? If not, now is a great time to start!
If you would please, I would love to learn your thoughts about pricing with our Focus on PRICING study: Click here to start the PRICING survey
Oh, and just so you know… I chose the dancing lessons. If I take the 12 month package it is 4$ less per month than yoga, if I take the 6 month package it is $5 more.
Wish me luck! They begin tonight!