June 09, 2006
The Alpha Marketer
Continuing our conversation about offering higher priced products or services, let's look at one of the great benefits and competitive advantages of doing it.
More Marketing Money
If you were offering a $300 private online membership, and you had a competitor offering something similar for $50, who do you think has more money to spend on marketing?
You can spend up to $300 and your competitor can only go up to $50. Why is that such an advantage? Because you can go out and get all of those looking to resell, and they will want a piece of a pie that is bigger. Do you want 50% of $50 or 50% of $300? Not too hard to figure out the math is it?
More Effort?
Some marketers are intimidated by higher priced goods because they think it's a lot harder work to sell them. This has been found to be not true at all. The effort is the same for low or high-priced items.
The difference in the two is in the marketing itself. The high-end product can't simply be slapped on a webpage or be sent once through a sales letter. Very few buy high-priced items that way.
The first thing that needs to be done is to generate leads through getting people to let you know that they're interested. Then, once you know who they are you can take the extra money to market them. You should have all sorts of marketing tools in place like postcards, direct mail, email, telephone contace or even voice broadcasts. I also think online video or email video may play a larger role with this in the future.
One thing in all of this is that you must overdeliver on these products or services. And I mean overdeliver by a lot. Give value far beyond what is expected and you'll make a lot of money and make a lot of people glad you did it.
