There's Always A Right Price

Are your products or services priced correctly?

If your sales are slower than you expect, it could be that the price is too high. People will resist prices that they perceive to be too high, sometimes without even knowing it.

Movie theaters can sit empty. Used car lots can sit full. Inventories can create mountains as expectations whither in the wind, products obsolete themselves, and customers take new options.

But is there a price that people will buy?

My son Juan and I went to the movies this week to see the 4th Pirates of the Caribbean movie. It's an entertaining movie, but having seen the first three and considered the last just a little over-the-top, I could easily have skipped number four. But the theater we attended has a Tuesday night special ticket price of just $5. For a movie, that's good. We'd seen "Thor" a few days earlier and paid a whopping $13 a ticket (it was in 3D). For that showing of "Thor" there were maybe 12 people in the audience. I have to believe the theater lost money that night. But for "Pirates" and its $5 seats the theater was almost full. It looked profitable that night for me, and it was so much more fun to be in a larger audience.

Last week Amazon sold the latest Lady Gaga album for just .99. People who might never have bought her music cheerfully downloaded the music. So many, that it crashed the system for a while. While crashing the system is not what leaders are looking for, sales and creating new customers is.

Are your products or services priced correctly? What price point would optimize your number of customers AND profit margins?

-- Douglas Brent Smith

http://frontrangeleadership.com

Comments

Busy

What to do? High performance leaders prioritize based on mission, vision, values, and goals -- of course! And also, we prioritize based on what will just plain do some good. What's the point in leading unless it is to make a better world? There are enough needs in the world to keep everyone busy improving things. Keep going! -- doug smith

For example

Get good at something that won't obsolete itself. For example: emotional intelligence creating great conversations encouraging people leadership What would you add to the list? Which ones are you developing? -- doug smith

Money Isn't Everything

The profit motive is a poor substitute for genuine value. Money isn't everything. It's not even the most important thing. Oh, sure it's incredibly important. As a person who has many times wondered if there would be enough cash to pay the bills, I have come to respect mightily the value of money. But money is transactional. People are more than transactions. What we value most is more than money can buy, is more than a transaction, is a character of depth and peacefulness, and yes, love that is earned, not bought. Think about that for a minute. -- doug smith

Your Reputation

More authority means higher levels of responsibility. More power requires more service to others, not less. What you do with your power is who you will be known as. Also, how you use the power you have creates who people will remember you as. How do you want to be remembered? -- doug smith

Show Integrity

The goals we seek bring a lot of pull to them. We get wrapped in them. It's useful and it's powerful when we care about our goals so much that they propel us forward and keep us working even when we're tired, beyond the boundaries of our usual limitations. But they should not take us beyond the boundaries of our usual values. They should not trick us into bending the rules just because the rules are in the way. Truly high performance leaders of character who are focused, and centered, and noble maintain integrity. No cheating is ever worth the outcome. Integrity is so rare that many people don't even recognize. If you do, be thankful. We need leaders like you. To truly understand integrity you've got to keep it. Even when it's hard. Even the lines are blurred. -- doug smith

Search and Improve

Sometimes we do things a certain way because we've always done things a certain way. It's easy, it's comfortable, it's probably inadequate and it can certainly be improved. Finding the right process powers your productivity. Better performance starts with better processes. For the next twenty-four hours, pay attention to each process you engage with, and ponder how you might make that process better or, find another better one altogether. -- doug smith

Personally

Improving performance does require us to take our work seriously. But it does not require us to take ourselves too seriously. Taking things personally is a waste of self-esteem. -- doug smith

Measures Matter

Some people measure quantify first and quality later. Some people measure money first and impact to the team later (not even second!). How you measure productivity might determine your character and your reputation. Put people first. -- doug smith

Appreciate!

Do the people on your team get enough appreciation? Are you sure? No one wants to be taken for granted. We all benefit from recognition and appreciation. Plus, when high performance leaders give out appreciation, they discover that not only does the person who is receiving the appreciation enjoy it, it's also enjoyable for the giver. It's free, and the results are wonderful. Appreciation brings its own reward. -- doug smith

Start With Kindness

When you start with kindness you don't have to stay there, but you probably will. It works better for others. It works better for you. If you're human, you'll probably relapse. It does take practice to stay the course. The course starts by starting. When you start with kindness, it becomes more naturally the way. High performance leadership develops from the core leadership strengths of clarity, creativity, courage, and compassion. Build one of those strengths today thru some act of kindness and the others will get stronger as well. -- doug smith

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