Pricing is marketing – here’s how/why…

Marketing is far more than just your promotional activities (see diagram), and one clear example of what I’m talking about can be found in pricing and the resulting market positioning. Example: You are in the market for a consultant and find two. One asks $100 per hour, the other $300 per hour. Otherwise, they appear equal.

In observation – first, the consultant who charges more attracts a different type of clientele than they would at $100/hr. Second, the one who charges more has a higher PERCIEVED VALUE that attracts a completely different market segment (and mentality). Third, it’s conceivable that the person who charges more may in fact have less work, but what is done at three times the price will get more attention (read: attention to detail). As a buyer, based on this logic, you would be led to think that what you may save in price, you may pay for later in headache.

SO – given that – let’s pretend YOU are the consultant. What are you targeting? WHO are you targeting? What kind of fees are you targeting?

With that…

DO NOT discount your services or hourly rates. It devalues what you offer and doesn’t engender an appreciation for your product or IP. When you discount so you can get that big account, you create a downward spiral or bad habit that will effectively position you AWAY from the very account size you’re targeting. If you charge $600/hr – so be it. BE WORTH IT and do not discount. The people who can afford you WILL afford you if you are the right fit for the task at hand (and they’ll be a better client to work with).

Only got a few bucks and want to splurge on one big ad in an expensive magazine??? DON'T<< >>Vision Advertising is 2007 BBB Torch Award for Marketplace Ethics Honoree

About the author : Vision Advertising

Vision Advertising is a full-service marketing agency enhancing the online brand presence of business-to-business and business-to-consumer companies across the US. We focus on providing custom marketing services to address unique client needs, customer profiles, and budgetary concerns, created in-house by our team of skilled marketing specialists. This author profile is used for deattributed posts or when content is posted to this blog without comment.