Why Cut The Price ? How About Adding Value Instead?
Over at BloggingPro.com I saw the first of many posts about WordPress’ plans to set up a marketplace for themes.
I personally don’t mind if someone wants to create a professionally designed theme and them maintain and support it … for pay.
I’d rather pay for professional products and support than wait 3-7 days on someone who has a day job, a social life and an unprofessional attitude.
But that’s not the main reason I wrote about that post.
The first comment is. Check this out:
” … I tell you what, ill split profit 25/75. “
That was in response to the news that Automattic might charge 50% of the sales cost for their fee.
Why is the first response of an unskilled marketer/salesperson always a price cut ?
I’m thinking the unskilled, unlearned part of that equation is the main reason.
That and the fact they didn’t read this post .
There’s about 30 comments, as I write this, with people telling us they want quality, not necessarily the cheapest price.
Instead of cutting the Automattic price by 50%, why not sell the themes at the same 50% split, but add value in some way.
For instance, a tutorial on installing and pimpin’ your purchased theme.
Or you could offer free installation.
Or add value in any of 103 other ways.
Just don’t cut the price … unless you’re Pete The Price Slashin’ Pirate Parrot !
{ 8 comments… read them below or add one }
Even as I agree with the main thesis of the article, I also believe that in this big wide world, there will always be a market for people who will buy mainly based on slashed prizes.
Think, for example, of women who can’t stop themselves from buying when they see a bargain sale–not matter that they don’t really need the thing they are buying. And they are legions in this world.
Ismael D. Tabije
http://www.BestManagementArticles.com
Mike — My question is related, but from a different starting point.
I’ve developed two ongoing questions about the marketing process in general, and marketing folks specifically.
1. Assuming the obvious need for you, the marketing guy to know and understand the client’s business and related info: Why is it, with one lone exception, (one idea) truly exceptionally successful marketing ideas have come from me, and not the marketing company? Yet they want thousands a month to listen to me come with my own ideas. Frankly, a shrink can provide that service for tons less.
(This has been the case with three different marketing firms over four years.)
2. It’s only happened to me once, because I make it exceptionally clear, the option is not on the table. What option? The one where the marketing pro decides it’s time to take a bite out of my business.
The question: Is the client not paying for the expertise of the marketing pro?
I do understand the exception to my rock hard stand. If a business start-up has insufficient capital to pay for the marketers time, giving them a piece of the action makes sense.
Thanks Ismael.
You have a point, but I was speaking more about the marketing know how, or lack there of, than the actual price.
Speaking for me Jeff, I have no idea as to what the heck you’re talking about.
As for your lone question, unless I ask you what you’ve already done, already tried and are comfortable trying, I can’t help you.
As for the rest of that comment, I wasn’t able to make much sense from it.
Sorry.
OK Mike, let me try again — my bad.
You, as a marketing pro, need to know about what I do, and about my industry.
My experience, at least with three marketing firms in the last 10 years, is the following.
1. Every successful marketing idea came from me, not the marketer.
Question: Is this my fault because I’ve chosen marketing firms poorly? Or is that more or less the norm?
2. Though I understand why certain under capitalized companies would agree to cut the marketer in for a slice of profits, is it the norm for marketing firms to angle toward that approach?
Is it unfair, and/or naive of me to think the marketing pro, once they’ve ascertained the character of the industry and it’s current circumstances, plus whatever info they need from the client — come up with their own marketing ideas and plans?
Am I wrong in thinking the marketing pro will take all the industry info and the client’s company info, and return with their own ideas and concrete plans to increase revenues?
I feel like I’m missing a piece of the puzzle here. Have I been more clear this time out?
Okay Jeff, let me try ‘em one at a time:
1) Yes, if they can’t out-think and out-idea you, then you chose poorly … or you’re just a great marketer, which is a distinct possibility.
2) I can’t speak for everyone else, but as of now, I’d have to have a cut of the increase I created, not a static fee.
Your last couple of questions are more like statements.
They indicate your prior involvement with a marketing firm was not as successful as you’d like.
Here’s a real simple message for you:
Get over ‘em. They’re done, they’re gone, it’s over.
If you try to hold every other marketer in the world responsible for the actions of a few, you’ll never see the success you’d like.
No different than with a dentist, doctor or mechanic who doesn’t measure up for you. And no professional wants or likes to hear about someone else’s failures on a regular basis.
Go slow. Ask simple questions, get simple answers. They work much better than 30-100 word questions and they create actionable answers, which is the real key to improvement.
You’re not off base in your desires, you just need to keep looking and be realistic in your hopes and dreams.
For instance: If you sell real estate, there are only so many ways to market them and only someone who’s been in the industry a long time could do an adequate job marketing them.
Personally, I know what I’d do to sell ‘em, but I’m in the construction supply industry in my offline career ( two decades ), so I’d have an advantage over someone who studied marketing in college last year and hasn’t been around the home building industry for a long, long time.
Mike, I agree with you 100%…value-add is the way to go! Why else do people still go to marquee retail stores instead of buying everything in a discount store? People like the service, the little extras, and knowledgeable salespeople.
I go to any store that’s not a discount store for those very reasons John. I like professional help, advice and surroundings. I don’t just look for price.
Thanks for stopping by and taking time to comment.
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