My SO and I listen to the same radio station. She mentioned to me the radio station is asking for $2,000 donations. The two grand donation can be given at once or over a period of a year. She thought it was a lot to ask of people to donate. Why not ask for smaller donations so more people will be willing to pitch in, she suggested.
She’s right. They would get more donations if they requested a smaller donation and reached out to more people. But why? Why spend more money on advertising to the mass who may or may not donate a little bit to the radio station when the radio station can meet their yearly goal with a handful of large donations. It’s truly niche marketing.
If Ferrari really wanted to (heck do I wish they would), they could cut the price of their cars to a quarter of what they are now, sell a ton and still make loads of profit. Why, though, when they can produce a few hundred cars and sell them at high costs.*
Even certain news organizations could put ads on their sites, put up paywalls and charge submission fees for freelance content, but why when their journalism is so thorough and desired that they can meet their expenses just by asking for donations.
I think there are grand benefits in figuring out how much it is you want to make from an idea, invention or business and how exactly you want to make that much. You can follow the steps of selling a product or service and charge what everyone else is charging in hopes of gaining the attention of the mass public. Or (or!) you can find the condensed group of people who will pay top dollar for what you offer.
Might be worth mentioning there is a profit differentiation between the two methods. I think you can figure that out for yourself, though.
Stay Positive & Remember, The Less There Are, The More You Can Focus On Each Individual
*Quality of course matters. Yamaha wouldn’t be able to sell their mopeds for half a million dollars. The quality just isn’t worth that. But, there are products and services I see regularly I would pay more to have than what they are charging. Macs, Mizuno shoes, Biofreeze… Despite this post encouraging increased pricing, I can’t contest there’s beauty (and profit) with the effect of selling something for less than it’s really worth. (Something I’m sure we’re all thankful for.) Discretionary note: never price lower to the point people assume cheapness.
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