Teaching Sells was already excellent value but I just heard yesterday that you can sign up now for $1! If you were thinking of trying before but didn’t make the leap you should get in now before they put the price back up.
Why on earth would they give you all that for one dollar? Especially when people stampeded to get the courses at full price? Here we have a useful lesson in marketing.
$1 is News
First of all is the most obvious benefit to the customer; $1 is a bargain. In fact $1, £1, one loonie or whatever is so associated with “bargain” that it has been adopted by bargain stores around the world.
Customers like a bargain, which means you get more attention. Bargains are news. You can see this if you ever use Google Adwords advertising, you can often compete with entrenched advertisers just by using price as your weapon.
Obviously some items can be sold at a markup for $1 but that is not the case here. How do you make money selling your product for nearly nothing?
From Free to Full Price and Beyond
When selling you have the opportunity to sell various products and services at various price points. Different price points attract a different kind of customer in a different way. Price is a key component in your sales strategy but it isn’t just about selling low and gaining volume.
Supermarkets often have cut price offers as loss-leaders. These are products sold at cost or at low profit in order to get customers through the door in the hope that they will buy higher profit items to make up the difference. This actually works pretty well.
Another option is to sell a low profit item but bolt-on profitable items. For example you can put out a HD television at a huge discount but get the customers to buy the most expensive cables. Anyone who has been to a fast food joint lately will likely have been persuaded to bolt-on profit with an upsell; “go large?”. That’s not the case here either really, as what you are buying is effectively the same product as is sold at full price.
If there is no way to sell low then bring on additional profit then you need to find other ways to make the original offer easier to agree to. That’s where payment plans, credit and 0% interest come into play.
What you get with this offer is a trial. Brian and Tony are counting on a high percentage of customers becoming satisfied enough that they take on additional months. The $1 pricing shows they are confident that they are offering a valuable service.
Why Not Free?
If they are so confident, why not give it away? Why $1 and not $0?
There is a real psychological difference between $1 and $0 that might not be immediately apparent. With $1 you are making a financial transaction. You are making a purchase with all that entails.
Yes with free you offer something of value (your email address) for something of value (a free report or whatever). But even $1 on your credit card is an increase in commitment. When you use your paypal account or credit card there is a raised trust requirement on the part of the customer. It is a bigger barrier and therefore a more serious commitment.
What is given away often has lower perceived value than even something sold at $1. Something that is sold, even of only at $1 qualifies the customer, plus also shows the offer has value.
In fact there is a free item in the Teaching Sells marketing, the ebook.
When subscribers get the free ebook the commitment is much lower than if it was sold, but more than if anyone could simply download from the page. After reading the ebook the customer will understand the offer more and be more willing to take up the $1 price. If they get a good experience from the $1 pricing they will be motivated to take the full price.
The Profit Elevator
Too many businesses try to strike gold at first try. The amount of selling and trust involved in landing the big deal means the odds are stacked way too high, even if what you are offering is great. It is far easier to offer something easy to agree to and show your worth and incrementally ratchet up to the big offer when the trust and positive experience is there.
This is a lesson that can be used in any business. You will see I have services that range in price but I actually make the majority of my income from longer term clients. I could advertise hoping to land those but it is far easier to attract someone with a small, contained commitment. The risk is lowered for both of us and either party can walk away happy with a small transaction. Where appropriate these smaller jobs lead to larger jobs.
Think about your own marketing and see if you can create your own product ladder, from free download, to low priced item to higher priced items. What journey could you take your customers on? If you are currently only blogging, what could you offer readers that could make them customers?