[DD Classic:] The $750 Cat
I am absolutely swamped this week interviewing people who want to become a private client and get my “We Do It All For You” product launch package.
(Because I can only accept a very limited number of clients for this complete service there is an application and interview process before I select clients to work with.)
So, for the next couple of days, I’ll be reprinting part 1 and part 2 of my classic email…
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The $750 Cat
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Let me preface this little tale (get it, “tail” 
) by telling you that we already have two cats, both of whom I’m not particularly fond of.
My daughter comes home yesterday and starts describing this kitten that she saw at the pet store. She tells me how tiny the kitten was, how fluffy, how sweet, etc.
“Please Daddy, please can we get this kitty? I promise I won’t ask for another animal every again,” she implores.
I’m a sucker when Gina looks at me with her big blue eyes, so I ask, “How much is the kitty sweetie?” “Oh, Daddy it’s only $750.”
Well, daddy almost fell off the couch when he heard the price tag. Like I said, I’m a sucker but not *that* much of a sucker! “Who the hell would pay that much money for a freakin’ cat?” I wondered.
The truth is that there are a LOT of people who would pay that much money and more for a cat. And there is a HUGE marketing lesson in this story for every business owner on the planet. This lesson, if applied, will make you piles of cashola this year.
Do you think you know what the lesson is? If so, post your answer here on my blog.
This “put on your thinking cap” exercise in and of itself will spark the creative moneymaking genius inside of you. So even if you don’t nail the important lesson I’m thinking of, you’ll come up with bunch of ideas that will also make your profits soar.
The challenge has been placed. Post your comments here and let’s show the world how smart you are!
Kick butt, make mucho dee-nero!
~Dave Dee
P.S., Obviously my “We Do It All For You” product launch program is out of reach for most folks, but I am thinking of doing an 8 week one-on-one coaching program for a SMALL group of people who want my step-by-step guidance and help launching or re-launching their program. I’ll let ya know if I decide to do this.
July 20, 2010 12:05 pm 6 Comments
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By Kevin M. Roy, July 20, 2010 @ 4:03 pm
Dave,
I’m not much of a fan of cats myself, but I digress. The principle that I routinely follow, and that was pretty clear in your little tale is to market to people with money.
There are several other nuggets in this post, but one thing to remember is that it’s just as easy (if not easier) to sell to people who are not concerned about price.
When you have something other people want, and you can justify the price, don’t be scared to sell it at a premium.
By Larry S., July 20, 2010 @ 4:44 pm
Your pricing reflects your self image, or what you actually think your product is, and ultimately you are, worth. If you believe that your product is worth 3x your competitor’s price, then price it that way, provide the value to back up the price, and don’t budge. A few hundred years ago people were paying hundreds of dollars for a tulip plant. Crazy, but true.
By Gordy, July 20, 2010 @ 5:02 pm
Hi Dave,
Regarding your “Cat” story, let me guess – the selling price of everything depends on the perceieved value.
Reminds me of a friend who owned many businesses over the years. He once advised me that “…the best way to get rid of slow-moving inventory is to raise the price.”
I’ve been in the mailorder business for 30+ years, and have made a few bucks along the way.
Many years ago I was purchasing (and trading) customer lists with a fellow in Missouri. Turns out that we were both marketing one product from the same manufacturer – with a suggested retail price of $19.95. He was charging his customers the suggested price, but upon looking over my literature he discovered that I was charging $39.98 for the same item. He became indignant – felt that I was being dishonest by “cheating” my customers.
Funny thing is, he sold me his customer names for next to nothing – while thanking me profusly. He’s no longer in business (wonder why?). The wife and I often joked about “Weird Harold,” and I’d bet dollars to donuts that I made at least 10 times the profits that he even hoped for from his names.
About the cat. I’m a cat lover, and have had many of those creatures over the years. In a weak moment I spent big bucks (but not $750) for a pure-bred Pursian. It was the dumbest, laziest, filthiest cat ever. From then on I stuck with the offspring of “back yard sneaks.”
Hope you’re enjoying good health and prosperity.
Best regards,
Gordy
By mark, July 20, 2010 @ 5:39 pm
Dave I would love to see that 8 week One On One coaching program. I think people would like to know how to pick a product, how to market that product, how to create a follow up product, how to build that list and ‘caress it’ as much as possiable and more.
I know that your systems are well worth the money you charge for them. Be well
By Bob McAleer, July 20, 2010 @ 7:06 pm
No matter what you are selling or buying, there’s a price for everyone. Especially when there are emotions involved. There’s alot of (implied) value in a cat that cost $750.00.
By Bonny, July 21, 2010 @ 4:59 am
I think the lesson is that as long as you give quality, it doesn’t matter how much you charge, besides nothing is expensive as long as there is ready market and you target the market since the targeted market would buy.