by Deborah Kaufman on June 9, 2010
Deborah Kaufman
Have you been putting yourself on sale just to get the business lately? How many of you feel that twinge of guilt when you discuss fees with a new client? Feel as if you should apologize for your rate card?
In this economy, you’re probably not alone. There is a natural tendency to want to reduce fees in order to accommodate tight budgets. The truth is however, that when you dramatically reduce your rate (below 10-20%) you are diminishing your brand. You are teaching clients ‘bad tricks’ that they will use in future negotiations with you and setting yourself up for failure.
Pricing is always a tricky proposition. Customer psychology and market knowledge must be in balance in order for your pricing to work for you, instead of against you. Contrary to what you may believe, the lowest price is not always the most attractive to customers.
Some years ago, I owned a health newsletter company built solely on direct-mail marketing. We typically mailed 350,000 pieces each month. The postage cost then was nothing compared to what it is today, but nevertheless, when you’re dropping that many pieces every penny counts. Price was something we tested…and tested… and tested again, before we got it right. The experience taught me a lot about perceived value and pricing. I always assumed that if we lowered the price we would generate more response, after all…cheaper is better, right? What I learned was just the opposite. More times than not, the higher price lifted the response rate…and did so by a substantial percentage. I know you’re thinking this is crazy, but any marketer can tell you there are subtle nuances to getting the price right. And, perceived value is oftentimes greater with a higher price.
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by Deborah Kaufman on May 14, 2010
“Creativity is allowing yourself to make mistakes. Art is knowing which ones to keep.”
Scott Adams
Deborah Kaufman
I was listening as Dave was editing one of his live shows the other evening and heard a question come up about how to define creativity. Creativity has always been something hard to nail down in my opinion. It’s subjective and too often a personal perspective, yet it is the key measurement by which all work is judged.
I’ve struggled with the concept of creativity and how to describe it for some time. As a fine art gallery owner for a number of years, finding pieces that had the ‘wow factor’ was always a challenge. I needed exceptional pieces in the gallery to keep the high-end collectors interested and the doors open. Selecting work for the gallery was more art than science. I always hated to turn down an artist or photographer because their work wasn’t creative enough. I toiled with how to let them down without hurting their feelings, only to realize that I was doing them a disservice to send them out without trying to explain why their work wasn’t measuring up.
I began watching collectors and studying their behavior in an effort to better define creativity. What I found was that no matter the genre, great work was like a magnetic drawing people in. It didn’t matter whether they collected photography, abstract paintings or bronze sculptures; a collector would glance around the room, spot a piece that ‘spoke to them’ and immediately move to get a closer view.
I remember a conversation I had with an abstract artist friend of ours in the early days of the gallery that influenced my thoughts about creativity more than anything else. I was finding it difficult to select abstract pieces to carry in the gallery. I hate to admit it, but so many of them looked alike to me. I couldn’t pick out a sellable piece to save my life. So I was like a sponge when it came to learning what was collectable and what was not. My friend shared with me that most work is ‘flat and soulless,’ from his perspective. It’s simply ordinary. ‘What you need to look for is something that speaks to you,’ he said.
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by Deborah Kaufman on May 10, 2010
Deborah Kaufman
Why is it that a Starbucks cup of coffee always tastes better than coffee at home? Or, that a 911 Porsche suits my personal style more than a KIA? Coffee is coffee, right? And, isn’t the point of a vehicle to get you from one place to another? Yeah, right!
Okay, what we are talking about here is the perception of value. Value and worth are not necessarily interchangeable. Value is actually a very emotional response to a product or service. Would I spend more on something unique, than something that I can get everywhere…absolutely! Electricity is a commodity. I really don’t care who sells it, I just want it at the lowest price. Gas for my car is another commodity. From one gas station to the next, they pretty much sell the same thing. Give it to me cheap and I’m a happy camper.
Products and services tend to become commodities in mature markets that are flooded with people selling the same thing. To a consumer, there is little difference between one provider and another. Once a product or service loses it’s uniqueness in the eyes of the consumer, price is the only differentiator.
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by Deborah Kaufman on May 7, 2010
Turning the love fest into cash…
Deborah Kaufman
You’ve heard it and seen it. The number of followers on Twitter and FaceBook that many photographers have is simply astounding. It always makes me wonder how they manage to find the time. I struggle, like everyone else, with too few hours in the day to accomplish half of what I need to do. So, to say that I’m in awe of their numbers is an understatement.
I do wonder, however, how many of their contacts actually result in increased business for the photographer. I would guess that while their reputation is soaring, the cash register is still a little empty. I know what you’re going to say…it’s the network that will ultimately result in referrals to new clients. But does it? I’m not seeing as much of that as I’m seeing fan clubs that are great for the ego, but do little to help the bottom line. And, in some cases, that is good enough. Many of us post to social media sites for the entertainment and fun associated with staying connected to people we value. If that is the case, then read no further. What I’m talking about is the business use of social media and measuring results.
I know I’m opening up a can of worms when I suggest that if you are going to spend a number of hours doing anything for the purpose of advancing your business…shouldn’t it generate a positive outcome? There is nothing in shorter supply to a small business these days, than time. When your days are spent trying to juggle cash flow, staffing, inventory, taxes and staying ahead of the competition, every hour of time spent must translate into earned income. If not immediately…certainly, within a reasonable amount of time.
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