As a business owner, you may be anxious about how you’re going to get more customers &be tempted to drop or discount your prices. This kind of ‘domino effect’ is really unnecessary & I predict that businesses that fall into this temptation in order to get more business will not see it through to their next financial year-end.  However, serious business owners who understand that ultimately you can never compete on price alone who will be able to resist the urge with the knowledge that a policy of pricing to value is far more sustainable in the long term.

Here’s true story example provided by Julian Franklin of ‘Julian Franklin Productions’ ['Selling on Price' 7 May 2008] of precisely what happens when business owners make the basic marketing mistake of thinking that their cheap prices will help them:

Everybody loves a good deal. Sometimes this means a great product at a good price. Other times it means a good product at a great price. I have learned over the years to prefer the former rather than the latter, but that’s a topic for another article.

This is about selling yourself on price. I hear so many performers lamenting the new guy who “undercuts” them. No one can undercut you unless you are the low-price leader. And if you are the low price leader, then you INVITE undercutting.

Take for example, how excited I was when the “$1.00 Bazaar” opened near my house. Any magician will tell you it is a great place to go to find inspiration. The dollar store inventory constantly changes because they purchase their stuff from people who couldn’t sell it in a normal store. This is usually because it is of poor quality, flawed design, or of very dubious value, but again, I’m getting side tracked.

So I shop there and am pleased with the fact that the junk I’m buying never costs more than $1.00. This is a very good thing, because generally it is not worth any more than a dollar and sometimes I think I get ripped off.

So you can imagine how elated I was when a new store opened up across the street with a big sign advertising “Nothing over 99¢”.

YEE-HAWW!

And they claim the best selection of low quality merchandise in all of Texas. Yes, that’s a mighty big claim because there is a LOT of low-quality merchandise here in the largest state in the continental  United States.

“Giant 99¢” didn’t fail to deliver on their promise of a great selection of unsellable refuse. On my first visit I was awed by the incredible selection of wall-to-wall junk and not a single thing was priced (or worth) a single penny over 99¢.

Now, I’m sure you’re wondering, “How in the world could things in Texas possibly get any better for the bargain hunters?” But some of you already know the answer….

Yes, that’s right, we got our very own “Mr. 98¢” store! The grand opening was spectacular! They had day-old donuts, tofu hot-dogs on stale buns, and one of the least expensive entertainers in the city. He wasn’t there when I arrived 20 minutes after his show was supposed to start. And he still hadn’t arrived when I left 45 minutes later, but the store manager held pretty high hopes that he would eventually show up. You know, provided he wasn’t involved in another DUI or something.

So I drove home with a smile on my face that nothing could shake. I found a new resource for invaluable merchandise (actually it’s really more “unvaluable” merchandise, but my spell checker won’t let me use that word).

Then it hit me as I was driving in the warm glow of satisfaction (or was it the warm glow of the faulty chemical glow sticks I got twelve for 98 cents that had leaked all over the backseat?). Regardless, I realized this was much more than an amazing retail phenomenon; this was much more than a resource for discontinued and recalled items at below cost; this was a business model like none other.

Finally I realized how an entertainer who had nothing of real value could finally compete. By simply lowering your price you can create the unique position of being the absolute cheapest entertainer in your area! What kind of a FOOL would possibly compete against you when you held such a low-value, low-profit position?!

And even if they DID compete against you (as “Giant 99¢” did against “$1.00 Bazaar”), you can simply turn the tables on them and lower your price even further (like “Mr. 98¢” did to “Giant 99¢”). The possibilities are limited only by the number of divisions in your government’s currency!

As I contemplated the vastness of this marketing strategy I passed a store that clearly understood the concept. They were beating everyone to the punch. They were selling everything for just 79¢!

Unfortunately they wound up going out of business. I wonder why?

['Selling on Price' 7 May 2008 http://julianspeaks.com Julian Franklin]

How do you charge what you are worth?

For many new business owners, this can be a frightening question – it requires self-assessment & judgement of how professional & valuable your services truly are.  I’m not saying that you should instantly become the most expensive company in your industry; rather, I’m suggesting you really try to understand your customers more so that you can price your product or service to match the value of your product or service.

Customers are not unhappy to make large purchases, as long as they have a perceived value – you haven’t heard of any of the the famous clothing & shoe designers going bankrupt recently, have you?

As I discuss in , one of the main purposes of your business is to ethically exploit your customers: many people are shocked by this, initially.  But it is vital for the sustainable success of your business & your personal wealth development that you begin to make serious decisions about the true value of what your business offers. Once you know the value, make that your price & then stick to it. Don’t let the temptation get to you, I promise it’s worthwhile in the long run!

Deliver so much more than what your customers expect – make a “magical moment” – so that they are more than  happy to pay your asking price. At the point when your customer as bought into you & your offer, you price is now longer ‘too high’ or ‘too low’ but it’s ‘just right’.

Today, take a brief moment to sit, think & do a self-assessment: am I worth more today than I was 6 months ago? Shouldn’t I be raising my prices since I have gained more insight, knowledge & experience?

The people who have become truly wealthy instinctively know what they are worth.

Seven Tricks for Magical Copy
by James Chartrand

Magicians are skilled manipulators of perception. They can make people think something is moving when it isn’t or see things that aren’t there. Diverting attention this way and that, they can hide cards and rabbits or make objects appear from thing air.

Sales copy is a little like that, depending on who writes it. Diverting attention with a little smoke and mirrors often draws readers inwards towards a sale. It’s persuasive copy, written to get people believing in the buy.

Read the full article here.

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It was an EOX! We chatted about ARTS & things that made ANSWER.

EOX = Eye Opening eXperience
ARTS = Any Rubbish That Sells
ANSWER = Absolutely No Sense Whatso Ev R.

Peter subscribes to Comedianism – a religion designed to convert knowledge into guessedge i.e. to subvert everything sacred & proven in order to see the funny side of everything & discover new places, products & movies.  I, of course, believe in “Magic Moments” – those times when we sit back & experience something so remarkable & new that we need to say “Wow!”.  Breakfast with Peter was definitely one of those moments.

Peter Greenwall, author of the soon-to-be-Best-Selling-book, ‘Logical Stupidity‘, has over 20 years of local & international experience writing original music & creating seminars for both the entertainment & corporate market.  And not just any old events either: he was both the composer & musical director for the ICC Cricket World Cup in 2003, he has an extensive list of previous clients, & a wealth of experience. But Peter has no formal qualification in ‘making stuff up’ – which is why he actually qualifies to write a book about ‘making stuff up’.

If you’re looking for new ideas & solutions, the ‘Logical Stupidity’ method is a great way to ‘make stuff up’ & find your natural innovation & creativity skills. But you will also find that Peter has a incredible talent to spark new ideas that clearly demonstrates his ability to use his formula to its maximum potential.  It was this ability, together with his ANOID (new disorder: Absolutely Nowhere as a result of an Overactive Imagination Disorder), that turned a ‘musical seminar’ entitled “FLOPSTAR” into a over 700-page book that includes lyrics, music, sketches, scenes, product ideas & who knows what else.  Even after reading the ‘20% Free eBook‘ version of ‘Logical Stupidity’, I am in awe of his skills as a keen observer of the world, talented humorist & maverick-thinker.

Now I literally have a pile of 8 books on my bedside table that I want to read within the next month; I hate reading eBooks on a computer monitor.  However, the format of ‘Logical Stupidity’ is surprisingly reader friendly & I found myself captivated, laughing, thinking & sharing within minutes of starting to read it.  It offers an extremely high VIRFTI (Value In Return For Time Invested), since it not only offers you an inspiring & funny perspective on the creation process, but Peter even shares some fantastic nuggets!

Included in the commercial e-book are:

• For Business: 269 innovative products
• For Showbiz: 61 songs, 80 short songs for you to finish, 451 comedy sketches, 300 stand-up shticks, 43 TV show pitches, 31 movie pitches, 602 cartoons, photo’s & illustrations
• 25 legislations to combat the latest offensive trends
• 18 new disorders to tap into and use as inspiration
• 217 inspiration devices that were directly responsible for all of the above

Peter has decided to release all of the above value-adding items with a Creative Commons-type licence: in essence, you may use any of his concepts, as long as you give him full credit (& part of the profit, if you plan to sell it).  So whether you want to sell one of his brilliant concepts (‘The Batterari™ – a battery powered, ego friendly, hybrid sports car’), or wish to act out one of his sketch scripts on video (which can be uploaded & considered an audition to his soon-to-be-made movie), or just use his profound new Acrobuzzanyms in your everyday language – you can do so with Peter’s blessing.

Here’s just 1 example of Peter’s advice:

Observational Innovation: the practice of turning punch lines into taglines
i.e. observations into innovative products.

With observational humour, the comedy comes from reflecting reality –

e.g. have you tried dating online? Ever notice how all 3 pictures of your fantasy partner look nothing like the one you meet?

That’s your OOPS: Observation Of Pure Stupidity – i.e. you are reflecting reality.

With observation innovation you go one step further and actually change reality by doing something about your observation – you invent a product that solves the problem:

Introducing FutureFoto™ – what your Internet date will actually look like.

Turns out that the difference between humour and innovation is simply a matter of functionality: does the joke product work?

If it does, your punch line becomes a product that will make you laugh all the way to the bank.

• Peter is available for Full Cabaret Seminars (yes, the full song & dance show!), Business Presentations & Corporate Coaching.

• Purchase the full version of ‘Logical Stupidity’ here OR get your free “20%” eBook version here!

• Are you interested in using ‘The looniversal formula for innovation’ for inspiration & self-help? Click here!

• Are you interested in using the sketches, scripts, songs, music or acronyms for your own presentation? Showbiz talent click here!

• Are you interested in using Peter’s ideas & concepts for your company or business? Click here!

Here’s a demonstration of Peter’s presentation:

(If this does not display, watch here)

That’s what it says on countless electronic and mechanical devices. "Don’t touch this," it says, "you’re way too dumb to open it… you’ll get hurt"

The problem, of course, is that pretty soon you start looking at the entire world that way. Whether it’s web design or Google analytics or backing up your hard drive or just talking to the guys in the plant about your new ideas, it’s really easy to see the world as a black box.

Here’s a simple secret of success: ignore the sticker.

Figure out how to use the tools that the most successful people in your field understand innately.

Every time you interact with a customer, you’re engaging in marketing. Doesn’t matter if you’re instituting a policy, gaining some data, delivering an invoice… it’s a marketing interaction.

So…

When you bother 100 customers to get useful data from 2, you just paid a marketing cost.

When you yell at a classroom full of kids because one kid misbehaved, that’s a marketing decision.

When you make 5,000 non-smugglers wait in a steaming customs hall at a resort destination, you may think you’re doing your job and collecting those little white forms, but what you’re really doing is marketing (negatively).

And…

When you bring a little candy (which wasn’t required) with the check (which was) you’re using the transaction as an opportunity to do positive marketing.

Here’s a little thought experiment that will show how your managers are misjudging these interactions: Go ask your front line people what they’re doing when they’re doing what they think is their jobs. Like when they’re ripping tickets or answering the phone or filling out a form with a customer. How many say, "I’m using this as an excuse to market to our best customers"?

Three things you need:
1) the ability to abandon a plan when it doesn’t work,
2) the confidence to do the right thing even when it costs you money in the short run, and
3) enough belief in other people that you don’t try to do everything yourself.

I got a note from a college student last week, explaining that his professor told him he couldn’t use the term ‘viral marketing’ in a paper. It doesn’t exist, apparently, it’s just a new-fangled form of word of mouth.

I found the interaction fascinating (“I’m not certain what benefit is gained by arguing with an instructor” is my favorite quote from his teacher) but I got to thinking about whether the instructor had a point.

“Viral marketing” shows up 2,000,000 times in Google, “ideavirus” shows up 200,000 times. Of course, you could argue that just because millions of people are using a term doesn’t make it legitimate (though you’d be wrong).

Anyway…

Viral marketing word of mouth. Here’s why:

Word of mouth is a decaying function. A marketer does something and a consumer tells five or ten friends. And that’s it. It amplifies the marketing action and then fades, usually quickly. A lousy flight on United Airlines is word of mouth. A great meal at Momofuku is word of mouth.

Viral marketing is a compounding function. A marketer does something and then a consumer tells five or ten people. Then then they tell five or ten people. And it repeats. And grows and grows. Like a virus spreading through a population. The marketer doesn’t have to actually do anything else. (They can help by making it easier for the word to spread, but in the classic examples, the marketer is out of the loop.) The Mona Lisa is an ideavirus.

This distinction is vital.

For one thing, it means that constant harassment of the population doesn’t increase the chances of something becoming viral. It means that most organizations should realize that they have a better chance with word of mouth (more likely to occur, more manageable, more flexible) and focus on that. And it means, most of all, that viral marketing is like winning the lottery, and if you’ve got a shot at an ideavirus, you might as well over-invest and do whatever it takes to create something virus-worthy.

And yes, I happen to think that arguing with the instructor is a very good idea.

http://www.ted.com – When Richard Branson was at school, his headmaster predicted he would wind up either a millionaire or in jail. Since then, he’s done both. Here he talks to TED’s Chris Anderson about the ups and the downs of his career, from his multibillionaire success to his multiple near-death experiences, from Virgin’s line of spacecraft to the failure of the Virgin condom. He also reveals some of his (very surprising) motivations.

Author: TEDtalksDirector
Keywords: ted tedtalks
Added: October 13, 2007

…and despite the void he’ll leave, it’s almost impossible not to make a small joke.

Image by Getty Images via Daylife

And that’s the point, at least from a marketing point of view. Marceau made it through the Dip. He entered a field that was obscure, suffering from disrespect and filled with poseurs and hacks (all at the same time). But he pushed and focused and broke through. One person = an entire form of expression.

Jackson Pollack did it, as well. So did Yo-Yo Ma.

When a promoter wanted to book someone or promote someone or feature someone, there was only one choice. When Mel Brooks wanted a mime to speak in “Silent Movie,” there was only one choice. Only one choice is a good place to be.

The challenge is to find a field where the Dip is small enough to get through but big enough to matter.

(Was it an assassin? Did he use a silencer?)