As a business owner or marketer, you’re probably always on the lookout for something that will get your brand a little bit more attention, but have you ever thought about changing your basic pricing strategy? Retail, service, and professional industries often work with a very basic flat pricing or commission-based strategy, but the truth is that there are plenty of other models out there that could make for a good promotion or even a permanent change. Having an interesting pricing strategy is a great way to get noticed by the press, as evidenced by the following examples.
Rockers Make Millions With a Free Album?
With rock band Radiohead climbing the charts over the past decade, it seemed like the standard music promotion and distribution system was working well. However, the band announced in 2007 that their next album, In Rainbows, would be released online on a pay-what-you-want model, meaning that a person could download the album for free if they wanted. What sounded like a big joke when it was first announced turned into an extremely savvy business move. Getting rid of tons of overhead expenses and record labels, Radiohead managed to rake in a reported $10 million from the album, setting a new precedent for how bands make money. Is there something in your field that could be offered with the same model? As Radiohead have shown, not everybody is out to get a free lunch and the extra exposure can be literally worth millions.
Fluctuating Prices in Spain
Two Spanish companies have shown that having a fluctuating price model can also work wonders. Momentum Madrid came up with a novel idea to sell soda from drink machines – by regulating price with a thermometer. As the summer heat gets higher, the price of the company’s Limon Y Nada drink goes down. The notoriety gained by this unique pricing system has made the beverage one of the most popular in the country. In a similar fashion, the Dow Jones Bar in Barcelona fluctuates their prices like a stock exchange with a complex algorithm. As customers order a specific drink, the price is driven higher by the demand and drinks that have not been ordered in some time slide in price. Although it could be seen as a gimmick, it has made the Dow Jones Bar one of the most popular drinking holes in town.
Ready to come up with a creative approach to your old pricing strategy. Let us bring a few ideas to the table and you may be surprised just how much attention your business gets.