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by The_Busy_Mom
Tue Jul 09, 2013 10:43 pm
Forum: Instructors' Corner
Topic: New laws new price?
Replies: 10
Views: 2501

Re: New laws new price?

My price will probably go down, but only because my price includes a catered lunch. With the class hours reduction, I will most likely be doing class either before or after lunch, so no need to cater in. However, I will not be reducing any further than the cost of said lunch, which right now is about $12. I am already more expensive than the majority of providers around me, but I have amassed quite a following of students, and have gotten many referrals. I think of my CHL class like I do when buying a house: I don't want to be the most expensive house on the block, but I don't want to be the cheapest.

When I was in corporate world, I worked for a company who wrote computer software for the banking industry. In this software was information about the economic status of every zip code in America. So my company thought, since we already have to have this information for our banking software, let's also make a marketing program using the exact same information, but not just for banks, for everybody. This marketing software we priced pretty low because, heck, it was pure profit. But we couldn't sell it!! The number one reason potential clients did not buy it was because the client thought 'you pay for what you get' so it must be an inferior product. So we raised the price, and bam!! We sold the snot out of it, and became one of the top MCIF software programs. Same info, no program change, the only change that was made was to increase the price. Moral of the story: if the customer perceives value from your product, it will sell. Word of mouth is much more important than a few bucks. And most times, you really do get what you pay for.

:txflag: TBM

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