The Price is Right (Or Is It?)

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The names get called out, excited people jump out of their seats and clamber down the stairway; each time with that familiar voice screaming, “Come on down! You’re the next contestant on The Price Is Right!” Anybody who has been home sick from school, work or just had a day off within the last half 25 years knows what I’m talking about.

It’s too bad, though, that a lot of business people and entrepreneurs don’t realize the power of pricing within their success strategies. Their impulse is to sell more of something at a cheaper price under the pretense that people want cheaper products, yes?

True enough, but let’s take institutional brands like Wal-Mart or Home Depot. Who sells cheaper than them, and who competes? In our march to millions, we want to dream big but not start out swimming upstream against whales. Home Depot can lose money for years in a row but its owners will barely feel it. Most business people aren’t in that enviable position. If that were you in your business, you’d be feeling those losses alright.

Which is why as a growing or start-up business, you want to play where the big kids aren’t playing— niche markets with specialty products and/or services that certain people are willing to pay more for—certain qualities and customizations that you multiply but others aren’t doing. No matter what the economy, there are people out there who care about certain things and are willing to pay more for them because it matters to them.

Rich business people understand the true meaning of the Price is Right: they offer higher ticket items! Poor business people tend to offer low ticket items. People always think that if the item is cheap enough they’ll sell millions.

Don’t get me wrong. Selling $20 dollar items to one person at a time does make sense if that one person is buying 10,000 units off of you. Not saying everything you have has to be at a higher price, because sometimes it’s a good idea to have a lower price on some entry level products and then offer the higher pricing once they know and trust you.

Rich people who have the money just want that item! And here’s where it helps to understand a little bit of the money blueprint behind the dynamics of selling fewer for higher cost versus more for less. Most business people do not offer higher ticket items because their own self worth is low. Their price isn’t right with the intention of rich. Get the price higher and then increase the value, and get rich. Always deal with high volume buyers, not one on ones selling cheaper products. Don’t bother with that.

Ask Yourself this: What are some higher ticket products or services that other people in your industry might be offering that you might be able to add to your business? How do you make things special?

Now it’s your turn! Take this opportunity to share some of your insights on pricing. Are you having struggles with volume, or who can buy a lot of your product? Have you found any clues to selling less for more versus more and cheaper? The Million Mind community is that forum for like-minded visionaries to bounce ideas and suggestions.