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Pricing Strategies in Marketing – Are They Genuine Or A Ploy

A valuable skill in marketing is influencing people to buy your product.  Most pricing strategies are obvious and easy to implement. We see these in practice ever day in the marketplace.

An effective pricing strategy can increase sales.

For example, we are given 2 choices and the best value is immediately obvious to us.  Or we get a 2 for the price of 1 deal.  Or we might snag a discount for buying in bulk.

Online we often see discount offers when we commit to paying a subscription or membership annually instead of monthly.

Example Discount One Time Offer

The One Time Offer In Marketing Promotions

A popular marketing strategy used by internet marketers to increase sales is the limited time or one-time-offer [OTO].

An OTO is when a marketer sends a customer who has just made a purchase or a new customer to a web page that appears only once. The offer usually states that if the person leaves the page, the offer will no longer be available.

Upon exiting the page, a second offer of a different price or even a different product pops up.

Sometimes annoyingly a series of one time offers pop up when the visitor tries to exit the site.

OTOs can boost vendor sales but it must be done right to perform as intended, otherwise it can actually hurt sales conversions.

A strategic time to make a one-time offer is immediately after a customer has made a purchase.  This technique offers an incentive to an existing buyer to spend more on another product.  Usually such offers include a message that states:  “This offer will only appear once”  or “You’ll never see it again”.

Unfortunately some special offers are not relevant to the product just purchased, which does not leave the buyer with a positive feeling about the initial purchase.

This tactic is also used to boost sales from first time visitors. I’ve seen it used with one time offers from Clickbank and JVZoo sellers.  The risk with this method is that the offer is made before establishing trust with a potential buyer.

From a consumer perspective, it boils down to this question:  Is the offer a genuine deal or a ploy to upsell you into buying something you don’t need.

Lessons I Have Learned About OTOs

One time offers, when done right, can be an effective tool for sales conversions. But nothing kills a sale faster than a series of OTOs where the seller is desperately trying to earn a buck, rather than putting a genuine deal on the table.  My patience runs out and I lose interest.

Some marketers simply get it wrong and hinder the effectiveness of the one-time-offer process.  For example, a while back I almost bought a front-end product that was selling for $47. I clicked on the buy button, but before payment a new offer showed up, stating:  ‘wait a minute, before you buy, take a look at this deal’. 

I was taken to a higher priced version of the product, with the sales copy telling me that the front-end product I was about to buy will be more effective when used combined with this  further higher priced product.

Wrong psychology! There I was, ready to part with $47, when a new offer was made for a supposedly improved version at a higher price of $97. The usual ploy is to claim that only a limited number of privileged customers will get access to the extras included in the higher price.

Immediately I was made to feel that if I don’t buy the higher priced version I will not be among the privileged. Who wants to feel unprivileged?

It Is Not All Bad – Genuine Deals Do Exist

By contrast, I have had good buyer experiences.  I was in the process of buying a digital product for $79. No one time offer or special deal. I left the page because I needed to transfer funds and intended to return.  As soon as I hit exit,  an OTO popped up asking if I would prefer to pay $29 now and the balance in 15 days, with a 30-day refund option.

This was a pleasant surprise and smart. I had enough in my account for this part payment.  Who knows what distractions might have prevented me from returning to complete that purchase.

The seller obviously wanted the sale on the first visit but hitting the exit key triggered the OTO to pop-up: “Wait, don’t leave, how about considering this revised offer’. 

This method also conveyed that the vendor was confident enough about the value of the product to take the chance that the customer will indeed make the second payment.

Do you have any thoughts about one-time-offer deals? I invite you to share your experience with us. It could help others to set the right price or to recognize a weak deal.

Jude Banks - Bridging The Gap

 

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Source:  Wealthy Affiliate Website, author Kyle
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Comments 12

  • heya really good little web-site ya got there :-) I use the same theme on my own blog and yet for whichever odd factor it appears to reload quicker on your site even though the one you have consists of a good deal more content. Are you getting any plug ins or widgets which will quicken it up? Do you think you could quite possibly write about the programs so I can use these in my own online site I’d personally be happy – regards ahead of time :)

    • Several factors affect page speed loading. The first thing I would check are the images on the site – have you resized and compressed them?

      Or perhaps you have too many plugins, or plugins that have external connections – these can slow things down. Or it could be a hosting issue. Perhaps ask your host provider to look into it for you.

      I don’t use any speed related or caching plugins because it is automatically provided by my hosting service. If you would like information about my hosting service, send me a note via my contact page and I’ll be glad to help you out. Let me know the link to your site and I can take a look.

      Thanks for visiting and leaving your feedback. Much appreciated. ~Jude

  • Very interesting post and useful content on your website. I was happy to learn about one time offers and what to look out for with them. I have bookmarked your site for future reference. Thanks for the useful information.

  • Hey There. I found your blog using msn. This is an extremely well written article. I will be sure to bookmark it and come back to read more of your useful information. Thanks for the post. I’ll certainly return.

  • Useful and clearly explained about OTOs. I’ve been researching to do a one timer offer myself and what you say is useful. Thanks for the post :)

    • Thank you for visiting and taking the time to leave feedback. Glad you found the info useful. I wish you all the best with creating a successful OTO. Much appreciated. ~Jude

  • I am really enjoying the theme/design of your blog. Do you ever run into any internet browser compatibility issues? A couple of my blog readers have complained about my website not operating correctly in Explorer but looks great in Chrome. Do you have any solutions to help fix this problem?

    • Browser compatibility issues can happen with some themes. It is best to use a theme that is compatible with a range of browsers. That can be easily tested before deciding on the theme. See: Google Webmaster guidelines for testing browser compatibility.

      Perhaps you can ask the creator of the theme for help with this. For example, do you have the most up to date version of the theme installed? Or is there something in the code that can be changed to make the theme work in all browsers. Failing that, you might consider changing themes.

      Thank you for visiting and your comment.

  • Hi, Jude!

    Thanks for your take on upsells/OTOs/upgrades.

    I think the strategy can be a sore subject, particularly for newbies who hate having to fork out more for extra products.

    Personally, the only time I hate upsells is when I buy into ‘MMO’ products from Warrior+Plus because the majority of cheap programs tend to be low-grade and you must spend extra money to get more value.

    But I have come across some amazing free products (mainly from Russell Brunson), where his sales funnels offer upsells providing incredible value, even if some can be quite costly.

    OTOs are a great tactic for marketers because they do multiply profits, but if there are too many within a sales funnel, folks will pick up on the desperation and probably not even buy at all.

    Neil

    • Hello Neil, sorry for my late reply. I was in an accident and have been missing in action online. Broke my arms – both of them! I’m on the mend now.

      You used the right word when you said “value”. I too have bought products via Warrior+Plus and have had the same experience as you with a front end worthless offer that wastes both one’s time and money. Those are gimmicks to make one consider the more expensive up-sell product. I would rather be offered the more expensive version at the front end or give me a good deal to encourage me to buy it.

      As you say, OTO’s can be a good marketing strategy, but there needs to be a win-win for both the buyer and seller, not just for the seller.

      Thanks for stopping by and sharing your thoughts. ~Jude

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