Price Pitching

Summary

The script emphasizes the distinction between price justification and price pitching in the context of selling educational courses. It suggests breaking down the total cost into manageable monthly payments and using scholarships to create a sense of urgency and affordability. The strategy involves offering flexible payment plans, highlighting the initial low cost to start, and emphasizing same-day enrollment benefits to encourage quick decision-making by the customer.

Takeaways

• 📝 The script distinguishes between 'price justification' and 'price pitching', emphasizing their unique aspects in the sales process.
• 💬 Price justification includes eight points, starting with quality content and ending with flexible payment options.
• 💰 Price pitching involves presenting the cost in a way that appears pocket-friendly, such as breaking down the total cost into smaller, manageable amounts.
• 📉 An example is given where a course priced at 1 lakh is broken down into monthly and daily costs, and per-class cost to make it seem more affordable.
• 💼 Offering flexible payment plans is a key strategy, allowing customers to pay in installments, which is preferred by the majority of customers.
• 💡 The concept of 'scholarships' is introduced as a technique to reduce the perceived price without using the word 'discount', creating a sense of urgency.
• ⏰ Time-sensitive offers, such as scholarships available only during the counseling session, can encourage quick decision-making.
• 💸 The 'affordable start' approach is highlighted, where the initial cost is low, and the customer can invest in additional modules as they progress.
• 📈 The script suggests that customers are not paying the full amount upfront, but rather a smaller amount that fits their budget, followed by monthly installments.
• 🎁 Emphasizing same-day enrollment benefits can create a sense of urgency and encourage immediate action from the customer.
• 📊 The importance of explaining the long-term value and benefits of the course, beyond just the initial investment, is stressed to justify the price.

Q & A

What is the difference between 'pitching price' and 'price justification' as discussed in the script?

Pitching price refers to presenting the cost of a product or service in a way that appears affordable to the customer, often by breaking down the total cost into smaller, manageable sections. Price justification, on the other hand, involves explaining the reasoning behind the price, which may include factors such as quality content, value for money, and other elements that contribute to the cost.

How can breaking down the total cost into smaller sections help in pitching the price of a course?

Breaking down the total cost into smaller sections, such as monthly or per-class costs, makes the price seem more manageable and less overwhelming to the customer. It allows the customer to understand the value they are receiving on a more granular level, which can make the overall price seem more reasonable.

What is the significance of offering flexible payment plans in the context of pitching a price?

Offering flexible payment plans allows customers to pay in installments, which can make the course more accessible to them. It reduces the financial burden of paying a lump sum and can make the course seem more affordable, thus increasing the likelihood of a sale.

Why is it preferable to use the term 'scholarship' instead of 'discount' in the context of education pricing?

The term 'scholarship' implies that the customer has earned or is eligible for a special offer based on merit or other criteria, which can be more appealing than a simple discount. It adds a sense of prestige and exclusivity to the offer, making it more attractive to potential customers.

How can creating a sense of urgency through scholarships help in the sales process?

Creating a sense of urgency through time-limited scholarships can motivate customers to make a decision quickly. By indicating that the scholarship is only available for a short period or during the counseling session, it encourages the customer to act immediately to take advantage of the offer.

What does 'affordable start' mean in the context of course pricing?

'Affordable start' refers to the initial low cost that a customer pays to begin the course. It emphasizes that the customer does not have to pay the full course fee upfront, making the entry point to the course more accessible and less daunting.

How can emphasizing same-day enrollment benefits contribute to the sales process?

Emphasizing same-day enrollment benefits can create an incentive for customers to make a decision on the spot. By offering additional benefits or advantages for enrolling immediately, it can help to overcome any hesitation and close the sale more quickly.

What is the importance of explaining the progression of investment in additional modules and resources as the customer progresses through the course?

Explaining the progression of investment helps the customer understand that they are not committing to the full cost all at once. It shows that the investment grows alongside their progress and learning, which can make the overall cost seem more reasonable and justified.

How can the script's approach to pricing be applied to other products or services beyond education?

The approach of breaking down costs, offering flexible payment plans, using scholarships to create urgency, and emphasizing affordable starts can be applied to various products and services. It's a strategy that focuses on making high-value offerings seem more accessible and less financially daunting to potential customers.

What is the role of customer psychology in the pricing and pitching strategy discussed in the script?

Understanding customer psychology is crucial in the pricing and pitching strategy. It involves recognizing that customers often look for discounts and may be more inclined to purchase when they feel they are receiving a deal or special offer. By leveraging this psychology through scholarships and flexible payment options, the strategy aims to make the customer feel valued and encourage a purchase.

Can you provide an example of how to pitch the price of a course that costs 1 lakh rupees using the strategies discussed in the script?

Certainly. You would first break down the 1 lakh rupees into smaller, more manageable payments, such as a monthly EMI of 5,000 rupees. Then, you could offer a scholarship to create a sense of urgency and make the price seem more attractive. Emphasize the 'affordable start' by highlighting the initial low investment required to begin the course. Finally, explain how the customer can gradually invest in additional modules as they progress, making the overall cost seem more justifiable.