Identify Pricing Strategies
Okay, so let's look back. What are the five pricing strategies that we talked about? Let's quickly review them so that as we look at these pricing structures that you submitted, we can search for those strategies and try to identify them in use in the field. So, to review we have session fees. The session fee has two purposes. It is the gateway to your business. A high session fee leads to fewer clients contacting you or booking you. A lower session fee is a lower barrier of entry to your business, okay? It's the gateway that filters who's coming into your business. The second thing a session fee does is it helps offset the final sale. It allow you to collect some of the money upfront. That money's forgotten and then you have to have a lower final sale amount. So that's how the session fee works. Minimum purchase is a way to set an expectation for your client and say, "You should expect to invest at least this much with me." And, it also offsets the burden of that final sale because it...
happens in advance. That money is spent and forgotten. Incentives are rewards that you give your clients for doing what you want them to do. It's the treat, and so incentives can only, or should only be used whenever your client does what you want them to do. You never start these below your target sales average. And usually they build as your client invests more with you. These are inexpensive things that are really desirable and in demand for your clients. Bundling, this is the value meal, this is the package. So, it's putting products together in a way that allows you to sell what you want to create and combine it with something that the client wants anyway, and give your client a better price in the process. This is really great for clients that are really stretching their budget to invest with you. This is maybe a lower-end client but it doesn't mean they're not going to invest a lot, it's just the way they're used to buying, okay? Your high-end clients don't care about a bundle or a value meal. And then pre-design is the idea that it's hard for our clients to understand or conceive what it is that we can create until you actually show them what it is. So it works really well with products that require a lot of design like an album or a custom design piece for the wall, something like that. You've gotta shown them the possibilities before they're willing to invest in.