\u201cI could easily ask, for this amazing package, $100,000!\u201d<\/i><\/p>\n
The audience rolls their eyes inwardly \u2013 and in some cases, outwardly.<\/p>\n
\u201cI could easily ask, $50,000!\u201d<\/i><\/p>\n
But you\u2019re not, thinks the audience. So why don\u2019t you get to the actual price already?<\/p>\n
\u201cI\u2019ve had people offer me $25,000 for a package half the size of this one.\u201d<\/i><\/p>\n
Yeah? Which idiots were those?.<\/p>\n
\u201cSo, I thought about offering this package today for the low, low price of $20,000.\u201d<\/i><\/p>\n
In what universe is $20,000 a low price? Unless it\u2019s for a new Lexus.<\/p>\n
\u201cBut I wanted to really make this offer an event, so I considered setting the price at $15,000.\u201d<\/i><\/p>\n
The audience is now fighting to stay awake.<\/p>\n
20 minutes later\u2026<\/p>\n
\u201cAt $497, this package would be a steal. I\u2019d be virtually giving it away.\u201d<\/i><\/p>\n
Half the audience is now playing Candy Crush on their phones. Another 10 minutes go by…<\/p>\n
\u201cBut the price for you today, if you purchase in the next five minutes, is only\u2026 $47!\u201d<\/i><\/p>\n
A heavy silence blankets the room. Two tumbleweeds roll across the stage. A fox in an advanced state of rigor appears at his feet.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
This slight exaggeration makes a point, painful as it is\u2026<\/p>\n
Takeaway Pricing, though it may feel clich\u00e9, is still a fantastic conversion rate increasing strategy.<\/strong><\/p>\n Providing you do it correctly and within a proper, logical context, of course.<\/p>\n Consider\u2026<\/p>\n Takeaway Pricing works because it completely annihilates the audience\u2019s expectations (making your offer disruptive) and invites them to draw a comparison between the price they would usually expect or be asked to pay and what they will actually pay.<\/p>\n The temptation is to assume that if showing one price drop is effective, then doing it ten times in a row is going to be even more successful.<\/p>\n Or to assume that if dropping from $997 to $497 is effective, then dropping from $9,997 to $497 is going to increase sales even further.<\/p>\n But in both cases, all you do is neuter the entire strategy. The exercise becomes so over the top that it is rendered meaningless.<\/p>\n People may make sales decisions based on emotion, but that doesn\u2019t mean their sense of reason is completely removed. There needs to be some<\/i> semblance of logic behind your actions or your audience will become cynical and begin to doubt all the quality plot points they\u2019ve seen thus far.<\/p>\n Doing a price drop from $997 to $497, just for today, is believable.<\/p>\n But coming down from $100,000 to $47 (as in the earlier example) is seriously ridiculous. It\u2019s nothing more than a stunt. Everyone knows it. Noone appreciates it. Remember, in the previous article we said that the value of your package should be no more than 4-5 times that of your eventual asking price (The Bonus Stack<\/b><\/a>).<\/p>\n The key to effective Takeaway Pricing is to do it ONCE (or twice if you use the \u201ccloaking\u201d method I\u2019ll be explaining in a moment) and to make the drop substantial, while believable.<\/p>\n Let\u2019s go through how Takeaway Pricing should be used correctly in your VSL.<\/p>\n If you\u2019re following this series from the previous article (The Bonus Stack<\/b><\/a>) your audience should be looking at a page showing your product and bonuses, with a dollar value next to each one.<\/p>\n Start with the obvious and explain to your audience that they won\u2019t be paying anything for the bonuses today, and visually, on the slide, put a strikethrough each bonus value price. This action isn\u2019t Takeaway Pricing, it\u2019s simply removing a bunch of genuine costs from the equation.<\/p>\n Next, refer to the normal everyday price of your product (What is Your Product Worth?<\/b><\/a>) and announce that, today only, the offer will be less than\u2026<\/p>\n Choose ONE<\/b> of the above \u2013 or something similar \u2013 depending on what your actual offer price is going to be. And, again, put a strikethrough<\/span> the normal price of your product.<\/p>\n This is Takeaway Pricing done properly.<\/p>\n You\u2019ve started with a package that contains lots of great bonuses that, collectively, are worth a substantial amount, but you\u2019ve not directly suggested that this was ever the price you were going to charge. You\u2019ve just put this large sum in the mind your viewers.<\/p>\n Then you demonstrated the regular price of your product by showing them where currently (or previously, if the product is not on general sale) they could buy the product for this price.<\/p>\n This is critical because you\u2019re starting with a figure that is in no way made up or artificially padded. It\u2019s a real number, and you\u2019ve just announced that you\u2019re going to reveal a price that\u2019s even better than this reasonable sum.<\/p>\n And then\u2026<\/p>\n You still don\u2019t reveal the price.<\/p>\n *Groans from the audience*<\/i><\/p>\n Relax, my friends, it\u2019s coming in a moment. In fact, you should literally say something along those lines.<\/p>\n \u201cBut before you see this awesome price, I\u2019ve got something I quickly want to mention.\u201d<\/i><\/p>\n A money-back guarantee is an essential component of any offer. Announcing it at this stage in your VSL is the perfect<\/i> moment.<\/p>\n Money-back guarantees are so de rigueur that their presence is barely noticed by consumers. But at this stage of your VSL, when you\u2019re about to announce the price of your offer, now is the time you have your audience\u2019s rapt attention.<\/p>\n There\u2019s no fancy strategy for this stage \u2013 simply explain that you\u2019re personally committed to their success and, to that end, you want to take on all the risk. You want the deck stacked in THEIR favor.<\/p>\n Naturally, you have every reason to believe that they\u2019re going to have nothing but success, but since you can\u2019t control everything, you want to make it as easy as possible for them to get their money back\u2026 just in case.<\/p>\n If you want to make your guarantee seem even more generous than what they\u2019re used to, try one or all of these modifications.<\/p>\n No Questions Asked:<\/b> To obtain a full refund, the customer doesn\u2019t have to speak to a person or give a reason. Simply open a support ticket and request a refund.<\/p>\n You Get to Keep\u2026:<\/b> If they ask for a refund they can still keep one or two specified bonuses as a \u201cthank you\u201d for at least giving the product a try.<\/p>\n Muppets Allowed:<\/b> They can ask for a refund, even if they don\u2019t like the color or they feel like it disrupts the vibes in their house. Come up with anything silly or mundane that you like and tell your audience that they can even ask for a refund for these reasons and you\u2019ll honor it.<\/p>\n This last modification should sound jokey, but it will still be effective because it seals your commitment to offering a no-quibble refund policy. It also, curiously enough, has the secondary effect of actually DISCOURAGING people from asking for a refund for reasons that would make them feel shallow or that they simply haven\u2019t tried hard enough.<\/p>\n Do a very quick recap of the features, the bonuses, and the guarantee, and then finally\u2026<\/p>\n Finally\u2026!<\/p>\n Reveal that they can get their hands on the entire package for just\u2026 whatever your price is.<\/p>\n Notice that, although Takeaway Pricing is very much the strategy behind these last few plot points, you\u2019re really only showing a price drop, once.<\/p>\n And once is plenty, providing that you\u2019ve carried out the recommended steps leading up to this moment, and that the price drop is substantial while remaining realistic.<\/p>\n Remember the formula\u2026<\/p>\n Don\u2019t go from $997 to $897. You\u2019re only doing one price drop, so it should have an impact.<\/p>\n A good example would be an estimated value of $2,500, a normal, everyday price of $997, and a final offer price of $497.<\/p>\n Or perhaps an estimated value of $4,000, an everyday price of $1,997, and a final offer price of $897.<\/p>\n Those kinds of figures are powerful without seeming unrealistic or \u201ctoo good to be true.\u201d<\/p>\n An optional tweak at this point, to increase the impact of the final offer price is, rather than dropping the price a second time, to ADD something to the overall price. This could be an extra bonus, a longer membership period, or even \u2013 and if you watch infomercials, you\u2019ll see this done \u2013 a SECOND copy of the product at no extra cost.<\/p>\n This amazing worktop rotisserie can be yours today for only $97 plus shipping\u2026 But wait! Purchase today and we\u2019ll give you ANOTHER rotisserie, that you can give to a friend as a gift, for just the price of shipping!<\/i><\/p>\n This \u201ccloaking\u201d method of Takeaway Pricing strategy adds rather than taking away. It has a powerful impact, without merely repeating the price-drop action you\u2019ve already employed.<\/p>\n ***<\/p>\n There\u2019s a fine line between smart, effective marketing strategy, and clich\u00e9d, blatant tricks that will get you labelled as a purveyor of snake oil.<\/p>\n And staying on the right side of that line is mostly about exercising some restraint, and regularly asking yourself if your pitch retains a sense of logic.<\/p>\n Give reasons for offering a discount. Give reasons for including a particular bonus. Give reasons for including a cast-iron guarantee.<\/p>\n If you review the articles in the series, you\u2019ll see, time and again, how to strike a balance between strong selling techniques and maintaining respect for the intelligence of your audience.<\/p>\n Now that you\u2019ve revealed the price of your offer, all that\u2019s left to do is invite your audience to hit the \u201cAdd to Cart\u201d button. But that isn\u2019t immediately followed by your VSL coming to a conclusion.<\/p>\n The way in which you close-out your video can coax even more of your viewers to make a buying decision. In the final article in this series we\u2019ll demonstrate how to construct a FINAL call-to-action.<\/p>\n Speaking of Call-to-Action\u2026. You\u2019re going to need pages, possibly a membership site, autoresponders, a way to maintain a list, and soooo many other things to build your business, yes? Well, never fear. No need to feel overwhelmed because Genesis Digital is here for you. Have you heard of our all new, all-in-one business solution, Kartra?<\/a> \u00a0Every level of Kartra<\/a> comes fully loaded with all of Kartra\u2019s marketing power tools, standard \u2014 including UNLIMITED products, pages, membership sites, videos, helpdesks, sequences and more.<\/b><\/a> We offer different levels in order accomodate everyone. Kartra\u2019s got a plan for all shapes and sizes of online business \u2014 all with remarkably friendly pricing. You\u2019ll be amazed at the marketing power Kartra offers you for the money.<\/b><\/a> Check it out ASAP<\/p>\n","protected":false},"excerpt":{"rendered":" If you\u2019ve ever watched a Video Sales Letter (VSL), sat through a sales webinar, attended a live seminar, or watched any infomercial, you have witnessed Takeaway Pricing \u2013 the practice of repeatedly reducing the asking price to make the final offer seem less expensive. But, have you ever seen it done badly? It is, shall […]<\/p>\n","protected":false},"author":1,"featured_media":3408,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":""},"categories":[123,9,3,14],"tags":[],"yoast_head":"\n![\"Takeaway](\"https:\/\/www.genesisdigital.co\/blog\/wp-content\/uploads\/2017\/10\/Logical-Takeaway-Pricing-is-Logical.png\")
<\/p>\nIt\u2019s Logical, Captain<\/b><\/h2>\n
Plot Point #27: Takeaway Pricing<\/b><\/h2>\n
\n
Plot Point #28: Here\u2019s My Promise (Guarantee)<\/b><\/h2>\n
Plot Point #29: The Awesome Price<\/b><\/h2>\n
\n