I know it’s tricky to make sure the price is right when it comes to charging for your products, parties and packages. But the price of getting it wrong can be really high! Too cheap and your center gets run over and potentially full of people you don’t really want in your facility; too much and they may come one time but never again. Where’s the happy medium?
Don’t ask Starbucks! I went on a Starbucks strike the last time they raised their prices. I thought it was a disrespectful move during the middle of the worst economic crises in history. That lasted about four months. Last week I drove up to the drive-through window and placed my “triple grande caramel latte” order. I rolled forward to say good morning to my barista and pay for my coffee treat.
I was greeted with kindness. I love their service. And then it happened. It feels like slow motion to me. “$Fiiiiivvvve-OOOOOO-Niiiiiiiine” she said. To which I replied, “Do WHAT?!!!” That’s southern for, “What the ….” $5.09 – That’s definitely past my price point of no return! She apologetically said, “Oh yes, we’ve raised our prices.” I felt rude but told her she could keep the coffee. Okay. I didn’t really do that. I paid for that cup but I swear it’s the last latte I’m buying at a Starbucks! I know that my abandonment of Starbucks won’t break their company. I’m not encouraging you, as a business owner, to succumb to everyone who complains about your pricing. 28% of the people will only buy the cheapest product anyway. I’m not one of those people and I happen to think Starbucks should know that about me!
I don’t believe you should set prices by only keeping this 28% “cheap” group in mind. You’ll sell yourself out of business. I believe you are best positioned when you have top end, low end, and strong mid level value priced products. I would rather sell most of my products to the remaining 72% of the population.
With that said, don’t get arrogant (my opinion) like Starbucks! My son said, “Mom, why don’t you just buy coffee?” I’m so irritated that I won’t give them a single dime! Not for coffee, not for my precious “triple grande skinny latte”… not for anything. Starbucks has moved way past my price of no return!
What are the best price decisions you’ve made lately? Let us know in the comments section below or by posting on our Facebook or Twitter page.
