Dr. Kevin Nunley's Biz Tip:
Don't DropYour Price
Any history expert will tell you installment plans made American business great. People may not be able to afford a great product or service in one lump payment, but they CAN buy if you let them split the price into several payments.
Instead of dropping your price so more can afford your product, split the price into several "easy" payments. The price will seem lower.
One company is currently selling their product with infomercials on TV. The announcer enthusiastically tells us, "This item normally sells for $49 but YOU can get it for two easy payments of $19.95 plus $8.95 shipping and handling."
Add it up. The payments plus the s&h only saves you 15 cents. However, it works. The company sells a ton of these items--enough to pay for expensive infomercials.
Sometimes it may seem like more trouble than it is worth to keep up with customers making payments. Other times it may seem like too big a risk that some won't pay. Make sure your price is high enough to cover the risk so you still make money in the end.
----------
About the Author: Dr. Kevin Nunley is one of the Net's leading authorities on business promotion. He provides short articles on a wide variety of marketing and sales subjects. See his 10,000 marketing ideas and popular promotion packages at http://DrNunley.com. Reach Kevin at kn@drnunley.com, Kevin Nunley, 54 Ponemah Road, Amherst NH 03031, or 603-249-9519.
Copyright © Kevin Nunley. All rights reserved.
------------------------------------------
