OK, I’m showing my age with that headline (as well as my musical tastes!). And I challenge you (if you’re a Brit and were around in the early 80’s) not to hear the brass chords and the eerie flute tune… Last week I got back from one of my regular trips to Philadelphia. The weather over there was VERY hot and VERY humid, so on one particular morning I dived into a mall to shelter from the heat and enjoy a few minutes in air-conditioned comfort. I decided I’d take advantage of the situation to indulge one of my addictions, and […]
As I write this, I’m sitting in the Club Lounge at London’s Heathrow Airport waiting for my flight to Istanbul A big, flashing red sign on the screen tells me that my morning flight has been delayed until after lunch, yet I’m strangely calm for someone whose carefully planned day has just evaporated in a puff of virtual smoke. And through my mind (after a brief mental stomp and complaining to myself that it’s not fair) went the thought: I’m fortunate to live a life where the biggest problem I have to deal with is my flight being delayed by […]
Back in my MBA days I remember being taught about price skimming.
The idea was simple.
When you launched a new product or service, you launched it at a premium price, let the early adopters pay that premium so you could recover your development costs fast, and then over time, as sales dropped, you dropped the price to the market rate.
On the face of it, it's a really appealing strategy for experts launching innovative services: sell high, get a cash injection, and then let nature (and market forces) do their worst.
There's only one problem.
And it's probably one you can see instantly...
Have you ever been told that "the money is in the list"?
I hear it everywhere I go. And people fret over how many 10s or 100s of thousands of subscribers they have.
If you've been worrying about how big yours is, then fear not: in the world of professional services marketing, size doesn't matter anywhere much as you think.
There are people with lists of hundreds of thousands who are running out of cash, and people with only a few thousands of subscribers who have a fantastic business.
It's not how big it is that matters, but what you do with it.
And yes, this is starting to sound like a Benny Hill routine :)
But here's the thing.