These Savvies explore the topic of Business in more detail —
Sometimes significantly increasing a price on something can not only increase demand for the item, it can actually increase sales... and this principle applies to speeches as well as physical products.
So how do you avoid becoming a commodity? That’s where positioning and branding come in. When people want to hire you because of your matchless style or your unique content, you are no longer simply “a” speaker — you are “the” speaker that they want to hear.
As you have seen, there are a variety of reasons to set a low price (or lower your price) on a resource, including making the resource more affordable, increasing sales volume, or using a “loss leader” to increase sales in other areas. But there is one reason that you should not consider when lowering your prices… competing on price.
So you certainly don’t want to compete on price. But what about going the other direction — raising your fees? After all, there are a multitude of reasons why you might want to charge more, not less. But your customers may not share your enthusiasm for raising your prices. How can you justify doing that? There are several approaches you can try:
So, when it comes to changing your fees and prices, most speakers would prefer to go higher, not lower. But how high?
What if your target market cannot afford your fees? Don’t be too quick to lower your prices. You may be able to get someone else to pay for your programs or resources (through sponsorships or grants, for example).
Now that you’ve explored how to set the price for your resources or the fee for your programs, let’s explore a somewhat radical possibility — the idea that determining the price for your products is completely backwards from the way you should be doing it.
Some of the techniques for determining prices that you've considered in this course are logical in nature — the cost of producing the product, how much the target market can afford to spend, that sort of thing. But choosing a price isn't just logical; there's a strong psychological component to it as well. Let's consider the concept of price breakpoints.
Without going into the psychology behind it, here’s how to determine the price breakpoints in pricing your products or services. In general —
There is probably no issue that causes professional speakers more anxiety than trying to figure out how to price their products and speeches.