So often the topic of “price” comes up when I’m speaking to business owners.
Our competitors have lower prices.
We can’t lower our prices anymore without losing money.
The market won’t support our pricing strategy.
I don’t buy it. And rock ‘n’ roll history is on my side.
Last week I saw Fleetwood Mac at the Rogers Centre in Vancouver, BC. The place was packed. Sold out. Just like the rest of the stops on this tour that reunites the epic Mac line-up that includes Christine MacVie.
My tickets weren’t great. They were good, but not great. We were eight rows up, at the side of the stage.
Each ticket was $225. So my wife and I paid $450 to see a band we had already seen a dozen or so times.
And there were plenty of people who paid that – and more – to experience Fleetwood Mac that night.
I could have seen another band that night in Vancouver for a fraction of that $225!
Hell, I could have been entertained by buskers in the park for pocket change.
But that night, 18,000 people chose to pay at least $100 a person to see Fleetwood Mac.
It was never about the price.
When the product is so unique, the price no longer matters.
When the service is so special, price isn’t an object.
When the heart craves something, the mind doesn’t care what price tag comes with it.
Fleetwood Mac gave 18,000 people the chance to relive memories, take part in a reunion, hear amazing music, and see a legendary band at their best. That was an experience well worth the money.
If you find yourself constantly fretting over your prices, you’ve got a bigger problem.
If price is the issue:
* You aren’t providing a service or product that is unique enough.
* You aren’t creating an experience for your customers.
* You aren’t appealing to your customer’s emotions.
Unless low prices is your defining characteristic (like Wal-Mart, the dollar store, Southwest Airlines, etc), stop worrying about price.
When price becomes an issue, think instead about the experience, value, and reward that you provide. Think about the emotional needs you satisfy in your customer. Think about the things that transcend price.
Price is a logical element to the purchasing process. It speaks to the left brain, where numbers are calculated and figures are analysed.
Value is an emotional element to the purchasing process. It speaks to the right brain, where hearts sing and skin gets goosebumps and lifelong memories are made.
If you base your business plan on value instead of price, you’ll have a much easier time building a brand that is rock solid against competition, economic recession, and consumer fads.
But it’s up to you. You can take my advice. Or you can “Go Your Own Way”…
PS – thanks “gay concert dude” for the amazing video of this song.