Pricing Structure/Plan Assistance

[nochance]

Hi everyone,

I have a problem, which is holding me back alittle.

Do give a bit of background...

So far upto now i have been introducing my marketing business to companys and venues for free, the reason for this, to promote our solution for businesses, in which we have had a press release with local newspaper and so on.

Now the time is to move it up a gear.

The problem, there are no competitors, well in the uk anyway.

So we are not 100% happy with our pricing structure.

1.how do we create the value for our service, pricing

2.we cant have set priceplan as different clients will be charged different rates.

So what should we consider when pricing, i have never had this problem before, normally staright forward...

Rather than me state what the business is, please could anyone point me in the right direction of solving this, all advice wil helpfull.

Many thanks

Nathan

Stampvertise "stamping out the competition" Out of the box branding!

[cjd]

No-one can anyone answer those questions without knowledge of your business.

[nochance]

cjd,

Thanks for your reply.

Okay have a look at stampvertise.com, the site is only a landing site at the moment, site to be finished soon.

Im not after someone saying, charge x amount, i am after best advice.

Thanks.

have a look at site, what you need to know is on there.

[cjd]

So the plan is to stamp adverts onto kids hands at clubs?

Well no comment on the product but pricing could be several models.

1. per hand stamped (measurement problem)
2. per venue attended
3. monthly retainer with target venues and volumes agreed in advance
4. Performance/revenue share based (using a product code on the stamp)

I would tend to think towards ad/media/PR companies working for large Brand name companies in the youth market. Coke, Alcopops, games, cimema, music, fast food etc - pitch to them as part of their major campaign mix when they themselves are pitching to their clients - normally referred to as guerilla marketing.

[nochance]

Exactly.

We have a database of 23 evnues so far that will use our stamps.

3 have already used them in conjucntion with a no drink and drive campaign and drug campaign, also a make poverty history campiagn.

It is proven and works.

I have two dating websites which i have aproached, who are very interested, so far i have given free membership o our databaes for advertisers, brands etc.

Also as you said... we are in talks with redbull, for a muisc festival here in uk.

And have a fee for on of the dating sites of £400 per night, its there target audience, with which they are more than happy with, there competitor is also interested!!!

[nochance]

When you say you have no comment for the product, WHY!!!

Maybe you could use this type of advertising, at a particular large boat show next month with 8000 hands stamped with your product. Each day.

Imagine they would have to wash off your useless product, that they have no need for (voip), which is inked onto there wrists.

[cjd]

.........haha

[nochance]

cjd,

Thank you fro your input tho.

Im intersted in your services.

Many thanks

nath

[Cornish Steve]

Have you thought about simply asking potential customers what they'd be willing to pay?

[nochance]

Yes, have asked a local taxi company who i have arranged 1 night for free.

They said £200 per weekend, fri and sat.

Taxi firms are always in competition with each other.

In advertising competition in the clients eyes is good business for us.

They want there brand to stay on top, and not losong out to the masses of there taraget audience.

We were thinking of having a sign up fee to be on our database, which lets the advertisers have the option to choose which venues they would like to market too.

[cjd]

I wouldn't add set-up/sign-up/ stuff (ie pay me something for nothing stuff) until you have an established market - it puts new people off.

I would difinately write then call, the big marketing agencies with your 'service' - they often like to add a hit & run element like yours into their marketing pitch to the big brand campaigns. In an earlier life I've used flyposting for a blue chip company (a youth product) and projected my logo onto the Houses of Parliament - all as a small part of a bigger campaign.

Find out who runs Sony Playstation, Sega and Microsoft X-box campaigns in the UK.......

[DuaneJackson]

It's very simple to work out.

I said in a recent post that there are only two ways of working out how to price a product or service:

Method A: How much can you get away with? IE, what will your customer be willing to pay?

Method B: Work out how much it costs you to provide the product/service, then work out how much you money you'd like to make from it as profit.

In a market with competitiors you pretty much have no choice but to go with Method A - in your situation you can go with Method B if you want to.

[TracyMacey]

HI,

I thought it was an awful idea at first but actually for a lot of things its great! especially the taxis. I agree with Duane, but have you patented /trademark registered you idea? If not, it would be easy for someone to copy it. I would tend to price it according to number of hands to stamp and also what the product sale is worth to your client - like all advertising the cost is relative to the circulation/potential audience.

Hope this helps!

Tracy

[nochance]

Thank you all for your input.

It will always be easy to copy, but we have a database of venues that will, and have used our stamps, not trademarked yet, but will be.

[Cornish Steve]

Then make sure you run fast!