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.
It was Isaac Newton who famously declared that he was "standing on the shoulders of giants", referring to the fact that all his knowledge was a development of ideas that other, greater, people had developed before him.
In that sense, it has a role to play in your positioning as an expert--however I think of it in a very different sense when it comes to running and growing your coaching, consulting or training business.
As a coach, consultant or trainer, you can't afford to sell your time. Selling your life by the hour for an hourly rate is one of the biggest mistakes I see practitioners make when they market coaching, training or consulting. Think of it this way: if the next hour you work were also the last hour of your life, would it really only be worth whatever you're charging for it? Probably not. So watch this video to see what to do about it. Then head over to www.robcuesta.com/6figureblueprint to see me live
About 13 years ago I bought a coffee maker. It was an espresso machine - you know the ones, just like you see in Starbucks, lots of steam coming out, lots of noise (mostly from you banging the old coffee grounds out of the holder).
Most importantly for me, though, it was a machine from a "real" coffee maker brand: the people who make the coffee machines in Italian restaurants.
Well, my espresso machine has finally been retired, and last week I bought a Nespresso machine. It's made by Magimix, the blender people. Not a name I'd associate with fine coffee.
And yet... I feel so much better about the Nespresso purchase than when I bought the old machine.
And it's not just about the fact it makes excellent coffee (and anyone who spends much time around me knows I *LOVE* my coffee).
It's about the whole experience of opening up the box.
When I bought my old espresso maker, it was about £140 ($210), and that was 13 years ago, so maybe it would be a £200/$300 coffee machine by today's standards.
The Nespresso was £110/$175.
It's a cheaper machine. So I had lower expectations...