Minimum Purchase And Incentives Pricing Strategy
Minimum purchase. So this is similar to a session fee. What a minimum purchase, it's a strategy similar to the session fee, in that it relieves some of the burden off of the final sale. So when you book a session with a minimum purchase, you usually pay at least a percentage of that minimum purchase up front. Sometimes you pay all of it up front. And it's telling your client you should plan on investing at least this much with me. So, you can use this as a tool in combination with a session fee or you can use it independently. So here's how it might work. You could say, I have a session fee of $ and a minimum purchase of $400. So what you're communicating to that client, is that they should plan on spending $500 with you. Very clear, up front, no mistake, right? So, then we know we still have to get to that $800 mark, so we're still gonna have to sell $300 of product on the back end, alright? That's one way to get over halfway there up front. Or, you could use this to your competitive ...
advantage and say, you know, I don't charge a session fee. Everybody in the area charges a session fee, I want you to see what you get before you invest with me. There is a minimum purchase of $ or whatever you want it to be. You should expect to invest that much, but I want you to see everything up front, okay? Take the session fee off the table, all of a sudden, you are more competitive, right? Or, you could just say, I have a $500 minimum purchase. I'm so busy, I don't know what I can do and it's $500 if you want your picture taken. You see how those have very different messages? Of course you probably wouldn't say it to your clients that way. But I know photographers that have $1,500 minimum purchases. They're experienced, they've been doing it a long time, and they have to use that to filter and make sure they get to the right clients for their business, okay? So basically, the minimum purchase is a strategy to say up front, this is the minimum amount that you should expect to invest. You can use it in combination with other tools for selling. Okay, incentives. So, this is like the, I compare it to training my dog. I give my dog a treat whenever he does a good job. That's not a nice way to talk about your clients, but it's the same concept. So whenever your clients do something that you want them to do, you reward them for it. And you reward them with something that they're really excited about. And so, the trick to incentives is, you can't give an incentive to your client, until they reach that target sales average. So, when we're talking about our happy math and our target sales average is $800, your first incentive happens at $800. You never give them a reward for doing anything less than what you need them to do to make this a sustainable livelihood, okay? And incentives are things that they want, that don't cost you a lot of money to make. So the obvious one is digital files. You don't have a cost of goods on those, unless you're delivering them on a jump drive or a disk or something like that. And so, that would be something easy that they all really, really want. You could use this in your business as an incredible tool, maybe the only way they get digital files is if they do X,Y,Z. That is a powerful tool. You only get the digital files if you invest $1,000 or $1,500 or whatever it is, $500. Whatever you want them to do. Remember, digital files, once they're in the hands of your customer, there's no opportunity for an additional sale. So use them with caution. There are lots of other things that you can use as incentives. One of the favorite things that we always do is we give away cards to our clients that do certain things. But we only give them ten cards and that's very intentional. Our cards actually come in packs of 25, so it's not a logical thing from a business standpoint. But, I know for certain, that if they send ten of their family members a card, somebody is gonna feel left out, right? They're gonna buy more cards, always. Every single time, okay? So be really intentional about how you use these incentives and use them to get your clients to do something that you want them to do. Okay, other incentives. So cards, digital files, you could give them a really cute little, inexpensive frame for some unique product that you make. Give them a Christmas ornament. These are happy, little things that make them feel incredible, it's a gift. Makeup companies use this all the time, they are the king of the incentive. Whenever you go into a department store, you'll see gift with purchase. Same thing, so if you spend $50 on makeup, you get this cute little pouch with all kinds of goodies in there that you probably don't really use anyway. But, it makes you feel good as a buyer, right?