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Beat the recession with high priced products, see more income...

by Steve Grish
6 replies



Hey Guys,

If you are a marketer that happens to sell an item over $500, may it be Consulting, wealth package, web design, etc. You need to understand that your buyer has ton's of doubt, not necessarily in your product or service, but mainly in the fact that they can afford it.

A small test that we did, and it worked out great, was offering Financing on our product.

Case:

We had a $3,000 licensed piece of software that we sold to consultants as a solution for better international presentations. Meaning if you were a consultant agency in USA, it is easy to consult with someone across the world... with our software you are able to translate your consulting instantly, and your client reads it on the other side.

At first buyers were reluctant based on the price tag, however, we decided that we would allow our customers to finance their new software with a 8% interest rate, with no interest and no payments the first six months . Basically, they received the software for free for six months , and the next six months they paid $540 per month or a total of $3,240

This worked out great, because the clients received income the first six months utilizing the software, and then they were able to make their payments.

On top of that for every 12 sales we received, we got a free sale due to the interest rate we charged.

This is just something to think about for future ventures.

Steve Grish
#beat #high #income #priced #products #recession
  • Profile picture of the author ltdraper
    Instead of trying to sell a $3K software package, sell a $540/month service. It's a much easier sale on many different levels:

    1) Most companies have a formal process for software acquisitions, but a service flies right under the radar.

    2) Most managers can expense $540/month without going through the PO process. You sell it as "Less than you spend on the team lunches each month."

    3) Buyers think in terms of not being stuck long term, but if your product is really mission critical they'll be paying that $540/month long after they would have owned the software if they'd just paid the $3K up front. Given the average life span of most software products, you're better off with a 2-3 year expenditure.
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    Nothing to see here, move along...

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    • Profile picture of the author PlayedaBlinder
      Originally Posted by ltdraper View Post

      Instead of trying to sell a $3K software package, sell a $540/month service. It's a much easier sale on many different levels:

      1) Most companies have a formal process for software acquisitions, but a service flies right under the radar.

      2) Most managers can expense $540/month without going through the PO process. You sell it as "Less than you spend on the team lunches each month."

      3) Buyers think in terms of not being stuck long term, but if your product is really mission critical they'll be paying that $540/month long after they would have owned the software if they'd just paid the $3K up front. Given the average life span of most software products, you're better off with a 2-3 year expenditure.
      Excellent reply Itdraper!

      There's a tendency for businesses to expect IT packages to be cheaper over the Internet so an original offer of a product priced at 3k will be an instant turn off to many potential buyers. Offering a monthly fee ensures a better response rate, especially if accompanied by an escape clause or trial period. Test, Test, Test as Cory Rudl would have shouted!

      Mike
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  • Profile picture of the author Steve Grish
    Draper,

    Great thoughts, I might use this when we enter into our new niches with out software, the first version was in a specialized niche, I don't know if $540/M would fly, but testing will tell.

    Thanks!
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  • Profile picture of the author mattpaul2000
    It makes sense. But it is like everything...if you have a quality product, good copy and good marketing campaign you have a business. Bigger the margin in the product then the better. In terms of the recession...well we, Internet Businesses, can sell to the whole wide world and when people search online it is always to answer a question or find information.
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  • Profile picture of the author celente
    Good post.

    I think we are in a recession, heck maybe even worse...but who cares.... people still have money and if you give them what they are after they will pay.

    Lots of people are after free advice first, to prove you are the real deal, so if you give and give and give and gain trust it will be must easier for people to hard over their hard eared dollars.

    That being said, I still think this is a good idea. Kudos to you for thinking outside the box.
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    Create a $5000 USD a month Business. 1-on-1 Coaching. By 6 figure marketer! - CLICK HERE
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  • Profile picture of the author marcuslim
    Ted Nicholas' book is a good primer on this topic -

    How To Successfully Market High-Priced Products...How To Successfully Market High-Priced Products...
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    Marcus Lim
    Silver Bullet Publishing

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