If you are a massive enterprise or a scrappy start-up selling retail products, a service, or an amazing new digital offering – you STILL need to price correctly. There are fantastic books on this topic.
You can read about it from pricing legends, you can listen to all the youtube / podcasts, you can listen to your neighbor, or you can do focus groups.
I believe strongly in and seek constantly to better understand human behavior and this behavior through digital spaces. Here is where I see an advantage – one that I have shared with my clients and mentees recently. The results have been very impressive and valuable.
While I strongly recommend you to build out your knowledge in this space, as I believe it’ll arm you for decades forward .. sometimes we just need to move fast and know what is the BEST PRICE for my product.
Focus Groups – are useful but have tons of limitations. Here is the 2019 version:
2019 version of Focus Groups
- Build 3-6 websites with homepages / landing pages (this is free)
- Each one should be a fake company that is similar to your offering (but keeping details to a minimum).
- Create 3 Facebook and Instagram campaigns that target your target demographics
- Ad Sets that speak to the creative and intention of the 3-6 websites
- Set budget to $400-$600 total for all campaigns all in
Now we have the scaffolding, here is the magic:
For each Website set a DIFFERENT pricing strategy and message with an email capture for those that are interested. You can use shop graphics, but let’s make the value proposition similar to our offering.
Now let this run for 3-6 weeks.
Look at the data and let’s see where your MARKET is inclined to buy. Simple. Now you can of course market these folks after with re-targeting too and even send them a ‘big reveal’ email in the future with a coupon to your shop.
That’s it. Go get it. And HEAR what your market is inclined to buy. This framework was shared by GaryVee in a youtube video and it reflects similar steps I have taken, so I have expanded here based on what me and my clients do… He is a great resource, though you have to be ready to hear him.