How to increase your prices during the recession
Having three kids and living just an hour and fifteen minutes southwest of Disneyworld, rest assured I’ve made many pilgrimages to see the house that mouse built.
In fact, I’ve been to at least one theme park a year since 1989 when I moved to Florida. And I don’t think there’s ever been a time I went there, that the thought of how pricey the trip was, didn’t cross my mind.
And now, here we are smack dab in the middle of the worst economic recession the country’s ever seen since the Great Depression, and what happens?
Does Disney offer a price cut on weekends in August for families of four or more? Do they let kids under twelve in for half price on Fridays? Do they give away free cholesterol-filled artery-clogging deep fried chicken nuggets outside Cinderella’s castle?
Nope, not even close. They INCREASE their prices by around 5%. Now it costs $72 for an adult to get in, up from $69.
And what do you think is going to happen as a result of this? Because if you do an online search about this, people are outraged! And I don’t mean mildly pissed off, I mean Al Sharpton “Day of Outrage” kind of angry!
Questionnaires show that people are now going to rethink their plans about Disney moving forward.
Know what I think? I think they’re going to rethink their plans for about 45 seconds and then book their flights to Orlando International Airport, that’s what I think.
I’ll tell you why: Disney is the ultimate in “unique” places. There is literally not a single other place on earth where you’re going to get the same experience.
In fact, Disney is so cool I love going there with Anne alone, even without the kids. It’s that much fun and that unique.
No one’s changing plans because of the old adage about paying high prices that says, “Price is only an issue in the absence of value.”
And one thing Disney delivers is value. They are one of the singularly most unique experiences you can have, period.
Often, consulting clients will ask me, “How can I raise my prices?” And the answer is to “just raise your prices.” Same way Disney did. In fact, they raised their prices without any fanfare at all — they didn’t call a press conference to announce it, they just “raised their prices.”
Their other entertainment divisions aren’t doing so well, so they went to the one place that won’t be impacted by a price increase – their theme parks.
And here are three ways you can provide enough value to your buyers so that a price increase shouldn’t matter.
O.K., here goes:
1. Guarantees – liberal promises that ensure there’s no risk to your clients go a long way to making people feel comfortable spending money. Lowering risk is one of the most enticing things you can do to encourage ANY relationship, especially a business relationship.
2. Give more value – one of the things most people do, especially during a recession, is to reduce prices. But for starters, if most people are doing something, there’s an outstanding chance doing something opposite to that is going to be better for you, especially since most people are mediocre, at best.
So start thinking opposite to what the crowd is doing. In my new book (September release), “How To Make Maximum Money WIth Minimum Customers,” (click here to get on the pre-release giveaway list) I devote an entire chapter to showing you how to easily increase the value of what you sell, by creating low-priced and high perceived value informational products.
But my point is, when you’re offering more you’re usually be to get more, rather than offering the same for less. Think “forward” not backwards, up not down… you get my drift.
(A lot of this also depends on who you’re trying to attract as customers or clients.)
3. And lastly, be the Disney of your industry, if you know what I mean. I don’t mean to walk around with mouse ears or find a mascot in a big goofy costume (unless you have an amenable ex-wife, of course). What I mean is, make yourself different in enough ways that people notice. Share your story, communicate often, and communicate effectively.
People don’t mind paying more when they know more about you. Remember, the more people know about you, the more they usually care about you. Especially when… they like… what… they know.
Now go sell something, Craig Garber
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