PSU Insight

Setting Your Fees and Prices

How Badly Do You Want the Sale?

Another consideration in pricing your resources is, how important is the sale to you? And why is the sale important to you?

If you really want the sale and you don’t want to take a chance on losing it, you might want to price your resource so low that it’s seen as an irresistible bargain by your prospect.

Keep in mind that there are many reasons that you might want to sell a speech (or a book or whatever) that have nothing to do with making money on this particular transaction. Selling the resource now might lead to future business. Or selling the resource might position you more strongly in the minds of your target market. In these cases, it’s usually to your benefit to price the resource as low as possible, to try to guarantee the sale.

It might seem that pricing the resource as low as possible is the “best” thing to do, but that’s not always the case. For example, actually selling the resource isn’t the only consideration. Simply offering the resource also provides you with valuable benefits, such as positioning.

So rather than offering a resource at an extremely low price (to guarantee the sale), it might benefit you to offer the resource at an extremely high price. Even though you may severely impact your sales of that high-priced resource (in fact, you might not sell any at all), you establish the resource (and by extension, yourself) as highly desirable and in-demand. This could possibly increase demand — and sales — for other related, but less expensive resources.