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Newsletter #721: The “Price is Right” Issue

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When it comes to creating remarkable products and their stories, pricing is too often overlooked. Try these strategies to get people excited about buying your stuff:
 
1> Take bids

2> Ask what it's worth

3> Have a price for everyone

4> Check it out: Showcase Showdown perfect bid

1. Take bids

Taking bids is a great way to get people excited about you as well as to find the real market value of your stuff. Google changed things when they strictly took bids from advertisers for AdWords, and eBay revolutionized the online shopping world with their global public auction. Some businesses have adopted this strategy as well, such as Galatoire's Restaurant in New Orleans which is so popular that they auction off reservations the Fridays before Christmas and Mardi Gras and donate the proceeds to charity. You could try auctioning off the best table in your restaurant, or having a special auction day instead of the same boring sale.

The Lesson: When you take bids, you offer a sense of excitement and create a feeling of urgency.

2. Ask what it's worth

This is flat-out daring, but most great marketing is. Done right, asking your customers to pay what they think it's worth will generate tons of buzz, loyalty, and goodwill. The Little Bay restaurant in London got everyone excited when they asked customers to pay whatever they thought the meal was worth throughout the month of February. In an interview near the end of the month, owner Peter Ilic said customers had already paid 20% over original prices and was confident he would make a profit.

The Lesson: Asking your customers to pay what they want immediately changes your relationship with them, and drastically separates you from competitors.

Learn More: Pow! Right Between the Eyes

3. Have a price for everyone

Offering various packages or tiered pricing gives your customers options and allows you to offer special high-end or discount versions of your stuff. Former Nine Inch Nails drummer Josh Freese has taken tiered pricing to a whole new level with his latest album. Packages begin at $7 for a digital download, on up to a $75,000 package (limited edition of 1) that includes a chance to tour with Josh for a few days, have Josh write and record a 5-song EP about you and your life, and have him be your personal assistant for a month.

The Lesson: Tiered pricing not only gives your customers more options, but also allows you to get creative with different packages of your stuff.

Learn More: Mashable

4. Check it out: Showcase Showdown perfect bid

In what is perhaps the most remarkable Showcase Showdown in the history of The Price is Right, on December 12, 2008, contestant Terry Kniess' bid of $23,743 turned out to be exactly right — beating out his opponent who was off by a mere $494. Because he was within $250, Kniess was awarded both showcases. But what is perhaps most remarkable is how nonchalantly host Drew Carey announces the event, calmly mentioning it hadn't happened since the early 70's.

See the Video: YouTube

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Comments

  1. Chung Nguyen March 5, 2009 at 2:51 pm #

    Wow, I’ve never seen an episode of TPIR with Drew Carey and man, his performance in that clip was SO LAME. A little bit more enthusiasm, please? PLEASE?
    Thanks for the ideas – interesting approach to generating some excitement! (:

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