October 12, 2021

Selling a Digital Kidney

Not long ago I noticed a solopreneur services provider offering access to their expertise in a live online session. Given the value of what they claimed to offer in this session (from my perspective, anyway), I would have expected a three-figure price. Easily.

 

The price?

$99.

It got worse, though.

“For a limited time,” the offer claimed, seats were available for half that price.

My perception of the value they were offering collapsed.

Why?

Price is an indicator of value in the minds of buyers, particularly in the absence of any other marketing signal. That price can signal quality, or, as in this case, mediocrity.

We’ve all made some version of this mistake (I have, anyway.) We think that cutting prices attracts buyers, when, in fact, it often repels them.

When the gap between price and what’s promised is gapingly wide, it often screams “too good to be true” or “there’s a catch” or “something’s not right.”

Most especially, if you’re a solopreneur early on in your practice, one “something’s not right” signal you must be careful to avoid is the whiff of desperation: looking like you badly need revenue—any revenue—just to stay alive. Even if you didn’t intend it that way, you might be signaling that you’re selling a digital kidney.

Maybe this individual was trying to attract prospects into their “funnel.” If so, it’s illustrative of how solopreneurs and smaller firms get tripped up by digital marketing whizbang, when, in fact, all they need to move the needle for their business is a handful of new or deepened relationships which turn into revenue.

This person might have been better off if they’d handled the limitation a little differently. One idea is limiting the number of seats available at that super low price and holding to that limit even after it’s met.

Even with that change, though, the negative signals of poor pricing remain.

 

 

Image created using Craiyon (Formerly DALL-E Mini)

(This blog post was also posted on LinkedIn.)

©Ray Business Advisors, LLC and John Ray

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About me: I help solo or small professional services firm owners with the confidence and positioning necessary to improve their pricing and change the trajectory of not only their business but their life.

I have a podcast called The Price and Value Journey, which features interviews with industry leaders and audio versions of my blog posts. You can find the podcast on your favorite podcast app.

I also have a book coming out in 2023:  The Price and Value Journey: Raise Your Confidence, Your Value, and Your Prices to Grow Your Business Using The Generosity Mindset.

For more information, go to PriceValueJourney.com