One of the biggest challenges facing a business is how to position and price its products and services.
Of course, if you’ve developed solid business and marketing plans, and have created a workable brand image for your company, establishing positioning and pricing may almost be automatic. However, if you’re still struggling with the development phase of your plans, determining the right mix can be a real headache.
I know, I’m in the midst of it now.
My initial idea as I began the plans for my online art gallery was to promote my own work at a low price and to have as broad a “product line” as possible. Good as far as it goes, but requiring a lot of work to create the site, load the images, track the inventory, handle a large number of orders, etc. – all the boring business stuff that I don’t like to do.
Then, in the course of my web hosting research, I discovered another roadblock to that plan: the e-commerce capabilities offered by some sites are limited in the number of products they can manage, as well as several other things. This from the review of a disgruntled user.
The work-around is to use a third-party vendor for the e-commerce software, but the hosting services don’t provide support for that software, so unless you know what you’re doing, you could have serious problems. After all, we’re talking about money here – yours and your customers – and there’s nothing that upsets customers more than paying for something and not getting what they expect.
So, I went back to the mental drawing board to try and find a solution.
In the meantime – somewhat serendipitously – I visited a couple art galleries – doing market research, you know.
If you’re ever in Carpinteria, CA, I can highly recommend the Chalk Gallery. It’s a tiny place, but has an excellent selection of first-rate work – really nice people, too – and can also be visited online at:
www.chalkgalleryart.com
But I digress, somewhat….
As a result of my gallery visits, I realized that galleries have to show new work all the time to keep prospects and customers coming back. I know, that’s a great big “DUH, of course!” But for some reason, I had it in my head that I had to push as much art onto my website as possible; something for everyone’s taste, and then just keep there.
Obviously, I’ve changed my mind or I wouldn’t be writing about it now. Instead, at least to start, I’ll be providing a much more limited selection, at higher prices to create a sense of value and exclusivity, and will be rotating the work more frequently. Pieces that don’t sell go out of circulation for awhile and return periodically, along with new work, to keep the site fresh.
Also, to keep the site high on search engine lists, I’ll also be writing frequently about art in general and mine in particular, something I hadn’t planned to do. After all, you’d think this marketing blog would be enough to keep me busy!
The point of this rambling is that, within certain parameters, you may have a lot of flexibility in how you price, position, and even promote your products and services. Increasing the price and reducing the availability may generate the same revenue from fewer sales, resulting in less work for you.
When I first started as an ad agency account executive – moving over from the creative side – I spent a lot of time going on calls with senior execs.
Two concepts became very clear to me, which I intend to incorporate into my online gallery. First, it takes about as much effort to sell a small account as it does a large one. And, second, the large one will not only generate more revenue for you, but will also be more likely to hire you because your cost to them is a much smaller percentage of their operating budget than it is for the small client.
Hopefully, this approach will attract more affluent customers. At any rate, it should enhance the brand image I’m developing of upscale sophistication. Of course, I can’t compete with top galleries and artists, but the Internet is a great equalizer, allowing me to present an image of the gallery and my work that rivals businesses with much larger budgets.