How should pricing work and why is it always viewed differently?
Pricing is one of the hardest areas of business to settle on and work with. Pricing will drive your revenue, revenue will drive your profits and profits will tell you how happy those with a financial stake in the company really are. But why is pricing so difficult when there are a lot of people or companies offering the same services or products? Why is it okay to pay price X for one item, but price Y for a different item? This piece is a personal rant on pricing and why it truly doesn’t make much sense if you are being rational about the way you or your company spend money.
Pricing is subjective to need, want and scarcity. If there isn’t a lot of something and the demand is high than economics tells us that price goes up and up and up until there are no more buyers in the market that can afford what is being sold. It’s like rent in Orlando, Florida. Prices keep going up, up, up and the wages people get are stagnant, while investors are pouring millions of dollars into new apartments around the area and more people keep moving into Central Florida every day. Which way is this going to go? Nobody knows. The old days of spending no more than a third of your monthly salary on rent are out the door and the new norm is to work two or two and a half weeks to afford rent while skipping out on other items you need in your life.
Business and business practices are much the same. Since most businesses are tied into just a single individual or a small group, it makes easier to make decisions. Problem is though… they typically don’t make a lot of logical sense. Let’s run through a few scenarios that people run into every day before we put the cart before the horse.
Scenario number one. Gas. Every vehicle owner purchases gas, probably quite often every week and yet we always worry about the price. But why do we worry so much when were talking a dollar or two? If gas is $2.50 a gallon and then goes up to $2.60, you have a .10 margin on the same amount of gas you purchase weekly. If you get ten gallons a fill-up and there is a .10 difference, you are looking at $1 in increase spending. If that dollar is going to break you completely and you cannot do it, than don’t… Don’t drive.
Scenario two. Fillings. When we go to the dentist and need a cavity filled we often worry about the pricing. A non insured individual will typically pay about $400 a filling. This is something that can be pushed off for years. It is not advisable, but teeth don’t just rot away overnight and can hold up for a while longer than you would think. We get the filling though and move on. One sitting, twenty minutes. Walk out and never talk about it again. You just paid $20 a minute, or $1200 an hour for a procedure.
You run a business. You don’t know where to advertise, but you know you should. Your budget is small, but you have big plans for your business. If no one knows about your business than you can’t sell services or products. If you can’t sell, you can’t stay open. So it is always baffling when companies have the money to spend on miscellaneous expenditures, but not truly on themselves.
Mark Marketing SB offers affordable digital marketing services at prices legitimate companies won’t match. For $500 we will work more than 20 minutes and MAKE you money. We don’t have a $1200 hourly rate. We won’t even up-charge you an extra .10, you can keep your dollar. We love digital marketing and have so much fun that it’s not about the money, it’s about helping others. Getting your company to succeed is a goal of ours too.
Come on over and see what we can do for you. Let us help you grow. We truly do care and will be with you every step of the way. We make this personal, because it is personal to you and us. We thrive on success.
Please visit https://www.MarkMarketingSB.com for more information.