So I tried responding to this with a video comment like 3 times, but for some reason youtube wasn't actually letting my webcam respond properly. >:(
Anyways, In addition to raising prices, it's good to have multiple price points because of the psychology behind it. With a series of items for say 100, 120, 150 and 500 (though the numbers are arbitrary) people will naturally gravitate towards the second lowest item. They don't want to be to cheap, but they also don't want to go all the way.
On the flip side, there are a smaller percentage of people who will buy at the top price, simply because it is the most expensive, and it reflects their own self worth.
And when someone wants to make a statement about themselves by buying your most expensive item, everyone wins.
Anyways, Great video, and love the advice. Keep it up and have an awesome 2012!
One other thought, for the artist rather than raising her rates -- the more common thing to do would be for her to diversify her offerings and distribution form factors for her art. In other words the first thing an artist of an established popularity does is to then go from originals to say APS and signed Artist Prints so you have one piece of artwork and yet you know have three things for sale at different price points. it also caters to those with interest with different funding levels.
Hey Marie! First, Nice video! though as an entrepreneur that has founded two businesses I was a mildly concerned that when you gave the advice to raise your rates to that one painter, you did not go more into any usable criteria on when your advice is truly correct and when someone may be pricing themselves out of their market. I know there is not some all inclusive simple formula but there are key factors to consider right? So time to discuss it so this is not catastrophic advice for some.
that said -- CHA CHING I subscribed to you Marie, You touched my inner mammi with yours. it was beautiful :-D yah I am laughing and just joking around with you. Though if you keep only using that voice to be emphatic I might start a campaign to have you get a puppet and give it full billing ;-D
@JustAnotherBeardo - hey again, we went into an awesome discussion on the comments on my site with this one. It's impossible for me to cover every possible scenario for every answer without making these vids HOURS long :)
@marieforleo again you are right -- certainly you cannot post often and do long well produced posts. I will definitely take a look at your discussion site and I am sure there is some good stuff there :-)
Hi Marie! I posted two video responses--one to this video and one to your birthday video. I don't see either and I don't see video responses from anyone else either. Did you receive them?
Marie, I love watching your videos. Such sound, clear, and good advice, and is open to all to boot. You are funny too, humor is always good to have even in business. I am a small business owner, I am a man but understand your videos can be used for anyone. I think I will send some email to you, as I am looking to expand grow some.
Great advice, Marie! I'm a big advocate of raising prices. I actually think you should keep raising them until you start seeing a dip in sales - that's probably a sign that you've hit a barrier and should keep it there for awhile and improve your biz/reputation, then start raising them again. I really hope this viewer sends an update - would love to know how it worked out for her!
@carmensognonvi she gave some great feedback already back on my site. She's psyched and also connected with some amazing art people in the industry who are further supporting her.
@carmensognonvi You're absolutely correct. Basic economics recommends that you corner the market, then increase your prices.
Though I was on a strategy call with someone earlier who recommended something brilliant too, while she normally sells at higher prices, she's brought in other people to pick up the lower paying gigs too, giving a wide range of services and a larger spread of happy customers.
Marie, thank you for this video. I am having a major breakthrough about really moving forward to market my artwork, and this is just what I needed to hear. Right now I'm using my facebook fan page as my site, while I design a new one. It's scary to raise prices when you don't have buyers banging down your doors but... These prices 'bout to go uuuhhp! xo Claire
Beautiful Marie, I know, first hand, of what you speak. I doubled my prices a year ago and have been more in demand than ever. It is quite liberating!
Marie! I love this video! I need help on this too. Problem is that so people that LOVE my clothing tell me that they literally can't afford it. I make everything in Canada but I am competeing with product made in China etc. Lots of my clients love that I keep my manufacturing local but some just can't afford it. I have thought that maybe I should up my branding and info so that I am attracting more of the clients that love and have the money to buy my clothing.....but I love ALL my clients.
When I raised my prices, not only did I get more student for my karate school but I also found that they were better clients. The higher price helps you qualified better prospects because they are really serious and want your service. Prospects that aren't as serious about your service will be turned away by the higher price. Also, I found when I raised prices billing problems and delinquency almost disappeared with it. It's counter intuitive but true.
People always think that if they charge less, they'll have more clients, but as you said it's totally opposite. So great pointers as always Marie Forleo!
So I tried responding to this with a video comment like 3 times, but for some reason youtube wasn't actually letting my webcam respond properly. >:(
Anyways, In addition to raising prices, it's good to have multiple price points because of the psychology behind it. With a series of items for say 100, 120, 150 and 500 (though the numbers are arbitrary) people will naturally gravitate towards the second lowest item. They don't want to be to cheap, but they also don't want to go all the way.
tommyisastrategist 1 month ago
On the flip side, there are a smaller percentage of people who will buy at the top price, simply because it is the most expensive, and it reflects their own self worth.
And when someone wants to make a statement about themselves by buying your most expensive item, everyone wins.
Anyways, Great video, and love the advice. Keep it up and have an awesome 2012!
tommyisastrategist 1 month ago
timely timely timely
phylliskhare 2 months ago in playlist Next Level Business Growth Advice
One other thought, for the artist rather than raising her rates -- the more common thing to do would be for her to diversify her offerings and distribution form factors for her art. In other words the first thing an artist of an established popularity does is to then go from originals to say APS and signed Artist Prints so you have one piece of artwork and yet you know have three things for sale at different price points. it also caters to those with interest with different funding levels.
JustAnotherBeardo 2 months ago
@JustAnotherBeardo Hey! There's actually a BIG awesome discussion on this at my site
marieforleo 2 months ago
@marieforleo thanks Marie I will go take a look and thanks for your acknowledgement. cheers and happy 2012!
JustAnotherBeardo 1 month ago
Hey Marie! First, Nice video! though as an entrepreneur that has founded two businesses I was a mildly concerned that when you gave the advice to raise your rates to that one painter, you did not go more into any usable criteria on when your advice is truly correct and when someone may be pricing themselves out of their market. I know there is not some all inclusive simple formula but there are key factors to consider right? So time to discuss it so this is not catastrophic advice for some.
JustAnotherBeardo 2 months ago
that said -- CHA CHING I subscribed to you Marie, You touched my inner mammi with yours. it was beautiful :-D yah I am laughing and just joking around with you. Though if you keep only using that voice to be emphatic I might start a campaign to have you get a puppet and give it full billing ;-D
JustAnotherBeardo 2 months ago
@JustAnotherBeardo thanks!
marieforleo 2 months ago
@JustAnotherBeardo - hey again, we went into an awesome discussion on the comments on my site with this one. It's impossible for me to cover every possible scenario for every answer without making these vids HOURS long :)
marieforleo 2 months ago
@marieforleo again you are right -- certainly you cannot post often and do long well produced posts. I will definitely take a look at your discussion site and I am sure there is some good stuff there :-)
JustAnotherBeardo 1 month ago
Hi Marie! I posted two video responses--one to this video and one to your birthday video. I don't see either and I don't see video responses from anyone else either. Did you receive them?
SisterFireTV 2 months ago
@SisterFireTV Hey, I don't see them either!
marieforleo 2 months ago
Marie, I love watching your videos. Such sound, clear, and good advice, and is open to all to boot. You are funny too, humor is always good to have even in business. I am a small business owner, I am a man but understand your videos can be used for anyone. I think I will send some email to you, as I am looking to expand grow some.
Thanks!
bwebmasta1 2 months ago in playlist Next Level Business Growth Advice
@bwebmasta1 thank you for watching! And FYI - I love both my lady and my fella business owners all the same :)
marieforleo 2 months ago
@bwebmasta1 awesome - thank ya for tuning in!
marieforleo 2 months ago
Great advice, Marie! I'm a big advocate of raising prices. I actually think you should keep raising them until you start seeing a dip in sales - that's probably a sign that you've hit a barrier and should keep it there for awhile and improve your biz/reputation, then start raising them again. I really hope this viewer sends an update - would love to know how it worked out for her!
carmensognonvi 2 months ago
@carmensognonvi she gave some great feedback already back on my site. She's psyched and also connected with some amazing art people in the industry who are further supporting her.
marieforleo 2 months ago
@carmensognonvi You're absolutely correct. Basic economics recommends that you corner the market, then increase your prices.
Though I was on a strategy call with someone earlier who recommended something brilliant too, while she normally sells at higher prices, she's brought in other people to pick up the lower paying gigs too, giving a wide range of services and a larger spread of happy customers.
tommyisastrategist 1 month ago
This has been flagged as spam show
Try it FREE for 90 days to start your own Internet Home Business!
┈┈┈ amazingautosystem.weebly.com ┈┈┈┈
MultiAhka 2 months ago
This has been flagged as spam show
My second salary!
Additional weekly income by work from home 2-3 hours, to help you complete the dream, to achieve financial freedom
Free to start your own Internet Home Business ┈┈amazingautosystem.weebly.com┈┈
MultiAhka 2 months ago
Marie, thank you for this video. I am having a major breakthrough about really moving forward to market my artwork, and this is just what I needed to hear. Right now I'm using my facebook fan page as my site, while I design a new one. It's scary to raise prices when you don't have buyers banging down your doors but... These prices 'bout to go uuuhhp! xo Claire
feltswan99 2 months ago
@feltswan99 Congrats on your new site. Yes - it's important to remember that September is in a position of HIGH demand and not enough time.
marieforleo 2 months ago
Beautiful Marie, I know, first hand, of what you speak. I doubled my prices a year ago and have been more in demand than ever. It is quite liberating!
As always, a terrific video,
- Sue
livingwithintention 2 months ago
@livingwithintention Congratulations!
marieforleo 2 months ago
Marie! I love this video! I need help on this too. Problem is that so people that LOVE my clothing tell me that they literally can't afford it. I make everything in Canada but I am competeing with product made in China etc. Lots of my clients love that I keep my manufacturing local but some just can't afford it. I have thought that maybe I should up my branding and info so that I am attracting more of the clients that love and have the money to buy my clothing.....but I love ALL my clients.
SaltsClothing 2 months ago
@SaltsClothing I like your idea of repositioning a bit. You can still love all your clients, and make wise business choices too!
marieforleo 2 months ago
random Sarah Palin outburst for the win.
gjozefi 2 months ago
@gjozefi ??
marieforleo 2 months ago
@marieforleo lol your friend there in the beginning of the video with the fargo accent. It was cute :)
gjozefi 2 months ago
When I raised my prices, not only did I get more student for my karate school but I also found that they were better clients. The higher price helps you qualified better prospects because they are really serious and want your service. Prospects that aren't as serious about your service will be turned away by the higher price. Also, I found when I raised prices billing problems and delinquency almost disappeared with it. It's counter intuitive but true.
trosanelli 2 months ago
@trosanelli awesome! thanks so much for sharing those details and congrats on your karate school success ;)
marieforleo 2 months ago
People always think that if they charge less, they'll have more clients, but as you said it's totally opposite. So great pointers as always Marie Forleo!
GripSOCIAL 2 months ago
@GripSOCIAL thank you!
marieforleo 2 months ago
it was the first time i heard an advice -increase value of product so people will think -more expencive->better.
i don't know why you have a little amount of viewers and subscribers for now.
you will have 100 000 subscribers in near future, i hope so )
thanks for advice
44yyBBaakk 2 months ago
@44yyBBaakk why thank you for that! :)
marieforleo 2 months ago
....excellent tips, makes sense...
therealSantos92 2 months ago
@therealSantos92 thanks for tuning in!
marieforleo 2 months ago