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Avatar Went Hot: November 21, 2007 - 4:52 am
Posted By: AndyBeard 292 days ago
Topic Type: News Story (Jump to http://www.michelfortin.com)
Category: Other Online Marketing
Michel takes a look at pricing models, that work not just with copywriting, but also other services such as SEO, SMM etc
4 Comments     

Comments

from massa 291 days ago #
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Absolute gold !! This should become the book of pricing in every marketers bible!

Michel Fortin, btw. is a name the SEM indusrtry doesn't speak often enough in my opinion. 

from Gamermk 291 days ago #
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I tried to convince my old firm to use this form of price structure and then just weren't as convinced of the benefits of it. The simple fact is giving people choice will at the very least deture them from trying to ask for a discount on your services.

from dreras 291 days ago #
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I like Michel's idea on pricing. Thinking back to my last five proposals, three of them I gave the three choice option and all three companies signed up. The other two I did not and they didn't stick around.

I think you appeal to people's natural approach to want to research everything to know they got a good deal. You do that when you present the client with choices.

from drsuccess 290 days ago #
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That's precisely why this tactic is so effective. It's stops the grinding away process with clients who tend to overnegotiate to try to "get a good deal," because it denominates, solidifies, and tags a value to each component in each package you offer, rather than making them a defacto part of a single package.

If clients understand what a package includes, not only within itself but also in comparison with other packages, then if they do try to get a discount, you have a fallback position -- offering a downsell rather than a discount. A more economical alternative, that is.

This way, you're not selling yourself short or give the impression that you're asking for too much with a single option.

When you offer only one option, clients often automatically assume you're trying to ask for the highest price, and therefore there's room to negotiate, which is why they try to usurp concessions from you to "get a good deal." They feel you are in control, which they don't like.

But with options, it noy only puts the onus of the decision on the client, but it also gives the client the perception of more control. They feel they are making the choice and getting the price they want -- not you.

And conversely, they're less tempted to ask for concessions because they know that, if they want more, they simply can choose the higher packages instead. (Either that or they know that this is what you will likely counter their request with.)

Anyway, thanks everyone for your comments.


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