Top 20 Marketing Mistakes: Number Three-Wrong Pricing Model

By: ActionCOACH Team

Discounting is a mistake. Period.

The Wrong Pricing Model comes in third in our Top 20 Marketing Mistakes series. We previously discussed the top two blunders: having no marketing team and using we vs. you verbiage in marketing materials. But pricing actually IS marketing.

Think about it. Stores often categorize items by high, middle, and low-price cost. And the human assumption, without fail, is always that the cheapest item probably has the lowest quality. When you buy a higher priced item, whether the quality is superior remains to be seen. What can be quantified, however, is that the marketing strategy behind the higher end ticket was superior.

There’s a difference between discounting and creating value. Discounting is the worst mistake that you can make in business. Price-focused shoppers who aren’t loyal will only stay around when you offer more discounts, in which case, you’ve lost the customer and profit.

Adding value is giving something away that adds value to the overall sale but doesn’t cost you much. For example, if you pay $1,000 for a jacket and it’s discounted at 10 percent, you’ve saved $100. But if the seller instead includes a shirt worth a retail value of$140 (an item the seller paid $30 for) in the sale as an added value, the overall worth of the interaction is increased as well as the perception of the brand.

Remember, if you are cheaper than your competitor you are telling the market that you are not as good as your competitor. Price according to the market, not cost, or discounted competitor pricing. You can see the accompanying video for this blog featuring Brad Sugars here.

Reason #1: Different styles and methods of business coaching don't work for everyone

It's important to be honest with yourself and conduct a realistic assessment when it comes to business coaching. Though business coaching can have many benefits, it might not work for everyone.

Every individual brings their own experiences and values to the coaching dynamic, so results will vary. Additionally, some individuals might need more than just a coach. They might also need specialised knowledge or communication strategies specific to their industry or target audience. Below are a few key factors to consider:

Reason #2: There is no clear focus or vision (talk about time dedication here too)

cIt's important to be honest with yourself and conduct a realistic assessment when it comes to business coaching. Though business coaching can have many benefits, it might not work for everyone.

Business coaching is an effective tool for developing a clearer focus and vision for growing your business. A good coach will help you to take a comprehensive look at your strengths, weaknesses, and available resources that can be used to reach those goals. They will also help you draw up action plans with step-by-step instructions to get there.

By providing honest feedback and being patient throughout the process, a business coach can make sure that you’re on the right track. This will enable you to set realistic milestones and tasks.

These tasks may need dedicated time outside of coaching sessions. For example, a coach might help a client develop a marketing strategy or implement new systems for managing employees. However, if the client does not have enough time to devote to these tasks outside of coaching sessions, progress will likely stall.

Both the coach and the client must have enough time available to reflect on past experiences, brainstorm new solutions, and test out different strategies. If either party is rushed or distracted during coaching sessions due to other commitments or obligations, they may struggle to fully engage in this process.

Effective business coaching also requires a commitment to regular meetings and ongoing communication. If either the coach or the client does not have enough time to dedicate to these meetings, progress may be slow or nonexistent.

It's important to recognise that business coaching is an ongoing process that takes time to yield results. While some clients may see improvements after just a few sessions with their coach. Others may need months or even years of consistent effort before they begin seeing real changes in their businesses.

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