I always wonder how premium brands sell yet they do not advertise neither are they cheaply priced. For instance, how many have seen an ad on television for Ferrari? But Toyota and other Japanese brands are a permanent resident on our screens. And how comes Ferrari turnovers are higher than Toyota Corporations? Or Apple being much more appealing to sell than let us say Nokia phones?
I bumped onto this analogy online as i was browsing, and i copy paste here for illustration purposes:
A friend once went to promote an new soft drink in a rich kids school. The drink was going for 10 bob (promotional offer) while Coca Cola was going for Sh. 40.
He realized very few were buying the soft drink at Sh. 10 and they were all flocking on Coke’s stand.
He quickly changed the pricing from Sh. 10 to Sh. 60 and the tables turned. People started buying the drink even more.
When sending bids, note that rich clients may NEVER even check your bid if you price too low. If a client is looking to pay someone Sh. 20 per 500 words. High chances are that he won’t even check the Sh. 2 – Sh. 10 bids. He’ll consider them desperate.
Therefore, NEVER bid too low for projects in bidding sites. Always check the client’s budget and bid either at their price or slightly lower. I’ve seen that even bidding slightly higher can work wonders. Aim to get to at least Sh. 10 per 500 words as soon as possible.
Are you surprised as i am? Yeah, i am sure you are. We expected that the cheaply priced items and bids would have a higher number of users than the premium priced but then, practically speaking, it is the premium priced ones that outdid the cheaper ones.
The secret herein lies:
People never buy the product for what it is. They buy the motivation behind the product. What touches the human soul of the potential buyer is what moved the producer to produce to manufacture the final product. That is what makes them buy. If it was pricing, we would be seeing the cheap products’ turnovers being much more than the cheaply priced ones. How then does Apple, premium priced as it selling more than Nokia, which is cheaper? The motivation for the manufacture of course!
In the same vein, we always reach a point that desperation make us to just accept what life brings our way. I always get so many inbox messages from people looking for jobs and when i ask them which job they desire to linked to, all they would answer is ‘any job’! And i tell them off that there is no job titled “any job”. You must know what you want and be psyched to go for it. That is what one who has a vision and is principled carries himself. Now worse off, are those who when they go for interviews, they quote a low amount of cash as monthly pay. What the interviewers see is that you are desperate and you have no intrinsic value attached to your skills.
I remember when i got employed, i had a perfect career development plan. That in five years, i should be made manager from being a graduate clerk. And yeah, i exceeded my expectations and was promoted in two years to be assistant manager and two years later, a unit manager. When i landed into my new position, i set a target to work and if am to move, my new employer had to add a specific amount of cash on my monthly pay if successful in convincing me to. I achieved that. And since the game was sweeter by the day, i purposed that my next employer would have to double my pay on poaching me out of there. And yes, when the time came a year later, they did exactly that. And how did i achieve all this? By building a track record and using it to sell to those who needed my skills and services.
Clients pay for quality. If you know you have something worth being paid for, do not undervalue it. Because the price you attach to a product or skills speaks much about the motivation behind the service or commodity you are selling.
So, what is your price? Let it reflect the worth of your WHY.
The writer is an acclaimed business author of Passionpreneurship Demystified and Business Networking: How To maximize on your contacts for Business and Professional Growth. He is also a Personal Branding and Business Coach with PBL Africa. In case you need assistance to give your business or profession a jump-start, he can be reached via the following contacts:
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