Mastering the Art of Pricing: Insights from a Conversation with Andrew Gregson
Mike interviews Andrew Gregson.
You’ve come to the right place to take your business to the next level. In a recent episode of Entrepreneurship Mastery, We had the pleasure of chatting with Andrew Gregson, the brilliant mind behind “Pricing Strategies for Small Business.” Let me tell you, this conversation was nothing short of mind-blowing!
SUMMARY
First off, let’s talk about options. Andrew dropped some severe wisdom bombs about the power of offering choices to your customers. By giving them the freedom to make their own decisions, you’re empowering them and increasing the likelihood of making a sale. It’s all about instant feedback, folks. And let me tell you, Andrew’s been doing this since 2008, and it works like a charm every single time. The principles remain the same whether you sell a product or a service.
He shared a fascinating story about the psychology behind pricing, dating back to 1883. Did you know pricing a product at $4.99 instead of $5 can make a difference? It’s all about perception, folks. Even though it’s just a penny difference, people are likelier to perceive $4.99 as a better deal than $5. And don’t even get me started on the magic of odd numbers like $6.73 or $23.42. Walmart’s pricing strategy is a masterclass in leveraging odd numbers to make customers feel they’re getting the best deal possible.
Customer retention is where the real magic happens. Andrew shared some eye-opening insights from Bob Thompson’s book on customer retention. Did you know that 40% of customers leave because of poor customer service? That’s right. So, you better prioritize top-notch customer service to keep those customers returning for more. And let’s not forget about quality. About 40% of customers also walk away because the quality doesn’t match what was promised. If you want to build a reputation for being the best, you better deliver on your promises.
Andrew emphasized the goldmine that recurring models represent, especially for product-based businesses. Procter and Gamble have been mastering this art for decades. By offering similar products with slight variations, customers are returning for more. Remember, every interaction with a customer is an opportunity to upsell and cross-sell. So, if you’re not collecting customer data, you’re leaving money on the table.
As Andrew rightly pointed out, simplicity is critical in marketing messages. Your elevator pitch should be short, sweet, and sexy. Take Domino’s Pizza’s unique selling proposition, for example: “Hot and tasty pizza delivered to your door in 20 minutes or free.” That’s a pitch that sticks. So, if you want to stand out, keep it simple.
Pricing strategies are more than just numbers on a page. They reflect your brand, values, and commitment to delivering value to your customers. So, take a page from Andrew Gregson’s book and master the art of pricing. Your bottom line will thank you for it!
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About Mike Fallat
Mike Fallat, aka The BookMan, is the owner of Dreamstarters Publishing and the Million Dollar Book Agency. They have helped 300+ entrepreneurs become bestselling authors. His goal is to help 1,000 entrepreneurs publish books and teach them how to use their books as a gateway to generating 7-figures.
Visit website for more information: https://www.milliondollarbookagency.com/
About Dreamstarters Publishing
Dreamstarters Publishing offers ghostwriting, cover design, and everything that is required to take an idea to a finished book (kindle, paperback, hardcover, and audiobook).
The Million Dollar Book Agency is the ultimate marketing CRM system for author-preneurs. Services include automated funnels, lead generation campaigns, book fulfillment, podcast management, press releases, virtual assistants, course development, and more.
Mike also hosts a podcast known as Million Dollar Stories and runs a membership-based site known as Million Dollar Circle. In addition to owning the book business, he invests in self storage real estate.
https://dreamstarterspublishing.com/