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The Magic Cafe Forum Index » » Tricky business » » Initial pricing structure? (0 Likes) Printer Friendly Version

Ed_Millis
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Inner circle
Yuma, AZ
2286 Posts

Profile of Ed_Millis
I was talking to a friend who owns his own business and he mentioned something I didn't think about before. (I'm running into a lot of that lately, if you hadn't noticed!)

I was intending to start with a "grand opening low introductory" price when I start booking in April, then increase in about 6 months. My thoughts were: more customers for a brand-new service with a lower price; gives me time to create a customer base for continuing relationships; gives me time to expand my offerings so my "introductory price" is now attached to a smaller-scale / lower-value show.

My friend suggested that by the time I get down to the third referral and now my "standard" show costs 30% more, I'm going to start losing customers! I need to start very close to where I want to be after my "grand opening" is done, and anything higher priced needs to be significantly different, or have additional features and benefits the previous show did not have (like the way some of add on a suspension or levitation or such).

What would you give for general guidelines on this?
Ed
Ken Northridge
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Atlantic City, NJ
2256 Posts

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Here is my suggestion:

Decide what you want your price to be in 6 months, lets say its $200. Make that your price now and offer, “$50 off if you book this month…” or “$50 introductory discount.” People understand the word sale and know they don’t last forever.

This way you don't have to raise your price, you're simply eliminating the discount.

This also gives you flexibility. You can discontinue the discount after one month, or if things aren’t going well at the $200 price in 6 months you can always come out with a “discount extended” promotion.

Good Luck!
"Love is the real magic." -Doug Henning
www.KenNorthridge.com
Sam Sandler
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2484 Posts

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I have run an ad on the back of one of my biz cards that said $25 off any show
then followed by Limited time offer
this way I can end it when ever I want.

worked well.

good luck
sam sandler- America's only full-time DEAF Illusionist
http://www.samsandler.com
http://www.deafinitelymagic.com
The Magic Cafe Forum Index » » Tricky business » » Initial pricing structure? (0 Likes)
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