Price vs. Value and Ezine Writing
Price Versus Value
I rarely get sick. When I do, it frustrates the crap out of me. Particularly when I have to travel. I’m writing this ezine at the Richmond airport.
I was dropped off early by my gracious hostess who had to get up at an UNGODLY hour to get me to the airport in time to POSSIBLY catch the earliest flight to Dallas. Didn’t happen. So, I write.
I write, still coughing and hacking like a lung cancer patient in his final hours of life. Lovely. Don’t get me started on phlegm. It’s been ugly.
Luckily for me, when I first arrived on Friday evening I was able to have my (previously mentioned) hostess call in a favor for me. She new a doctor who could prescribe me an antibiotic – TAMIFLU.
$113, and no chance for reimbursement from my lame and overpriced HMO, I got the drug on Saturday at around lunchtime. I took the first of 10 capsules. In LESS than 24 hours it was as if a prayer to your deity of choice (or the great Spaghetti Monster) if that’s who you would pray to, was answered.
Relief. Not just decent relief. An amazing difference in how I felt. Now I know why the Federal government is demanding they stash this stuff in case of the bird flu. Well known male “pills” will be way down on the list if that rears it’s ugly avian head.
What’s my point?
As you may already know, I’m a pretty cheap S.O.B. I hate to spend more money than I have to on anything I buy. Paying $113 for a prescription of Tamiflu was painful. Not NEARLY as painful as continuing to feel how I felt 24 hours before taking it. Worth every “red” cent. (I know that is now politically incorrect).
As another bootcamp of mine (www.FredInfoBootcamp.com is about to start. PS – there is ONE last minute space available if anyone can make it on short notice!) is about to start, I think of the price versus value equation.
People pay $3,000 to attend an event. They take a week out of their life. They can’t be making any money during that week. They gain a product and a business model they can use forever. Good deal? Seems like it from the response.
I think of how I make these calculations myself. I look at the price of a product or service. I then ask myself how much money I will make as result of paying the money. I ask myself how long it will take to pay back the amount of money I am paying. If things look good, I bite the bullet and plunk down the cash.
With YOUR customers, it works the same way. It is NEVER an issue of how much it costs. This is true with ALMOST everyone. For the “right” opportunity (and in some cases a very wrong opportunity) I’ve seen people without money to pay this month’s rent come up with $7500 to attend an event or learn a system.
How can this be?
Consider this example. Let’s say that you KNEW I was a clairvoyant. You knew that I knew exactly what direction a particular stock would move over the next week.
Assume you were 100% certain of my abilities.
You would be willing to borrow money from Aunt Bertha in Toledo to get the money to put down on this stock based on my knowledge of the future.
Everyone would make this call or take this action because it was a LOCK. A deal that was certain to happen. A NO-BRAINER. A done deal. Enough of that, you know what I mean.
How do you get your customers to look at your offer in a similar manner?
A few conditions have to be in place:
* They have to truly believe that you have a crystal ball or “perfect knowledge” about your topic or subject matter.
* There is nowhere else they can get this knowledge. Or at least nowhere else they know to look for someone with these skills.
* They have to trust you to “hold” their money. Knowing that they have to pay $7500 to make $15,000 in 90 days means they are comfortable having you act as banker for a quarter.
* There has to be enough evidence that you have done this in the past and gotten similar results for others just like them.
* They need to have an Aunt Bertha or a reasonable equivalent if they don’t have space on their credit cards or dollars in their bank accounts.
* They have to want it bad enough andwant it NOW.
I recently saw an offer from a reasonably well known guru offering a service which I thought was pretty pricey.
The reason that me, MR. CHEAPO was willing to consider it was:
* The individual is clearly one of the, if not THE knowledgeable expert in the field.
* No one else I had seen had made an offer in this area which I had intense interest in.
* I’ve met this person and I’m 99.9% certain that they would be there at the end of the process.
* I read their testimonials from people and was convinced that others had gotten great results.
* Aunt Bertha was unnecessary since I have good credit and the prime rate has recently dropped.
* I wanted what they were offering REALLY badly!
My next question was: Could I do this myself? If so, How long would it take me? Can I do it myself and save the money?
If you are making offers to people you better answer all of these questions that have in their heads in your sales copy or you will NOT be able to get them to take action.
My answer is that I am PREPARED to pull the trigger shortly. I’m hesitating only because I have someone who THINKS they can figure out the system without this costly help.
(This would have made a much better story IF I would have just told you I went ahead and did it! Only one problem. It would not have been truthful. Sorry, but I’m one of those people who actually considers the issue of veracity when writing my copy. How shortsighted of me????? HA.)
How long will I wait to pull the trigger here?
The dollars involved are just south of $10k. Got the money, but hate to spend it. BUT, if I can see that I can recover the funds in less than 12 months, I’ll still do it.
(12 months is my window because access to the cash is not particularly difficult or painful. For others, that timeframe may be much shorter.)
An additional element that made the offer I’m considering attractive is:
The guarantee tells me that unless I make an additional $XX,XXX.XX in the next 12 months, I get all my money back.
Talk about risk reversal. This is a pretty confidence inspiring guarantee.
I believe this individual would in fact refund the money if I didn’t get what was promised.
So here is how my mind works. I have someone who THINKS they can accomplish the same results without having to pay the money up front to get going with this program.
I have given them 10 days to show me some results. If those results are forthcoming I will NOT take advantage of the offer.
Although to be honest, with the guarantee that’s being offered I’m STILL tempted to do it because of the fact that this person is the acknowledged expert in the field and person helping me is NOT. At least, not YET.
I think it’s crucial to do this kind of analysis. The process that one uses to make decisions is critical to understand when creating your offer.
You really do have to try and get inside their heads. The heads of the people considering YOUR offer.
I wrote much of the copy for the
I’m a decent copywriter. According to one (former?) reader of this ezine I am apparently masquerading as Sabrina Brick. She IS a copywriter.
The way that I wrote the copy for this site is that everytime I could think of an objection that people had, I created a separate section and wrote a paragraph to address it.
Initially I did NOT offer a guarantee. This because of the fact that once people know “MY” system they can’t give it back. I’ve CHANGED that.
I now DO offer a guarantee based on results for people. I made this change after asking myself what I would do if offered an event that did not have a guarantee.
The answer is that I would not do it. Plain and simple.
I wanted CERTAINTY regarding the program that I have described that I am considering. Since the certainty is there (in my mind) then the only question is where you get the money from.
Your action step at this point?
Put yourself into the shoes of the person who may be considering buying your product or service.
Walk yourself through every possible question and objection they may have. Answer them. Directly. Give them the straight scoop. Tell them what you can and can’t promise.
SHOW them that by giving you $X you will return to them $2X or $3X within a given time. (If you can do that).
Follow these guidelines and your chances for success selling information and/or information products will be dramatically increased.
I mentioned this site a few weeks back. I wanted to talk about it again for a number of reasons. First, I love the idea of taking an existing asset and doing everything that you can to make it “pay its way.”
I own a place in NYC. It’s a small place, but it’s mine and I have a mortgage on it.
I use it when I’m there to do business. I record audio programs there. I do Mini-Seminars there.
In addition to being a pretty decent place to hang out, it also pays its way.
(Soon after getting Henry, my second chocolate lab, I put them to work. A company called Labrador software let the word be known that they were looking for Labs to hang out and be petted in exchange for $50 per dog per day.
Since there are no labor laws relating to pets (although I’m CERTAIN one of the planks in one of the two parties platforms will have a clause about this issue) I put them to work.
I only WISH that Labrador software had not been the only source of revenue for my 2 “children.”)
From my NYC apartment, which I have to pay the expenses on every month, I asked myself what else I could to to turn this asset into a profit center without affecting my lifestyle.
I decided on three that worked for me.
I would rent the place on a nightly basis to friends who wanted to stay there. New York City hotels are running $300+ a night. Friends who I know and trust feel more than comfortable slipping some money behind the toothpaste container in the medicine cabinet.
They don’t feel bad because they would have had to stay at a hotel and I don’t feel bad because it helps me pay the monthly expenses.
If you’re asking how I could POSSIBLY ask friends to pay to stay at my place, it’s easy. Friends are always looking to give you some innocuous gift for using a place. I always think CASH makes a great gift. I’m sure many of you agree.
Just in case you’re wondering, we don’t charge FAMILY a fee to stay there. After a recent experience, I think I need to change that policy.
The apartment (massive as it is at 287 square feet) is set up to comfortably allow for up to 6 people to sit around for a day and not be incredibly UNcomfortable.
Thus Fred Mini Seminars dot com and SpendTheDayWithFred.com. Spend the night with Fred was summarily vetoed by my new LIFE PARTNER (I love using that term because it always makes people wonder what you are????) wouldn’t permit it.
I suspect enrollment would have been NIL.
These two events will help finance the NYC apartment on a regular basis.
I have left HomeExchange for last. This site allows people with homes of various shapes and sizes in all different parts of the world to participate in a barter deal. You stay at my place and I’ll stay at yours.
For many of the people, this is done with a second home, thus allowing for NON simultaneous exchanges. This is what I will mostly be doing.
Here’s an example.
I’m thinking about going to Australia between Christmas and New Year’s of this year. If you want to come along, make sure and watch for . . . . you guessed it, vacationwithfred.com!
On the profile for my site I put three or four places I’d like to travel. Sydney was one of them. I have gotten 3 or 4 inquiries from people in the last month looking to to an exchange with the NYC apartment.
Let’s look at the $$$ here. A decent hotel room in Sydney, like the value I would place on my NYC apt is about $300.
Let’s say I stay for 10 days. I’m “saving” $3000 by doing an exchange. I love this stuff.
Combine that with the number of frequent flier miles that I have (if I use them) and my Sydney vacation may cost me virtually nothing.
Food you ask, while I’m there?
Well, that’s the reason why there’s: www.LunchWithFred.com. Although some how I feel like one or two lunches in Sydney will not hold me for the full TEN DAYS!
Oh, well, Mr. Moneybags will have to dip into the coffer to pay for some groceries and/or a trip to a good Indian restaurant or two.
(Side note: If you ever notice that I’m headed some place where you know of a good Indian restaurant in that city, make sure and send me an email!)
As I am writing this email on the plane to Dallas from Richmond I’m reading Seth Godin’s latest book: “Meatball Sundae.” (which, like all of his, this one is excellent).
www.HomeExchange.com is the type of business that could only exist with the new marketing paradigm. Doing what it would take to set up home/apartment exchanges would be possible but HIGHLY impractical.
Do YOU have a niche that could be served by a membership site like this one?
Think of your niche? Do they only get a chance to kanoodle at trade shows? Why not offer them the opportunity to hang out together online? If you don’t do it, someone else will!
HomeExchange charges a flat fee of $100 for the first place you list and less for each one thereafter. I’ve got both my Vegas house and the NYC place listed on this site and the responses are 20:1 in favor of NYC.
Don’t tell the Chamber of Commerce folks in Vegas.
One of the things we implemented at the most recent bootcamp was the alumni group. It’s a Google group set up only for those who have attended the FredInfoBootcamp.
This is a big selling point to this event. Only hours ago I emailed my webmaster Stanley asking him to please add a section to the copy on the site which mentioned this as an additional benefit of attending.
As we become more “cyberized” (my word, you heard it here first) you also want to cavort with cohorts. A membership site is the ideal way to do this.
In short order, my membership site software will be done. You will be able to use it. For a FEE of course. BUT, as always, it will be reasonable.
I get this question a lot from groups I speak to. They want to know HOW I write my ezine. How to I get my ideas? How do I put them down on paper? (on the computer)
My answer is simple. I LIVE MY LIFE. What is not as easy to understand is that I’m constantly looking for things that can illustrate points that I would want to make for information marketers.
You can do exactly the same thing I do.
Some of you will say you’re not very good writers. Many say the same about me. Who cares? As long as you’re expressing ideas and putting them out there, you’re fine.
The writing will improve. God knows mine sure has.
As I go through my “normal” (no laughing please) life, I take notes into my computer. I find ways to integrate sites I want to promote into those
All the Best,