How to Determine Optimal Pricing for Your Products or Services

In September of 2019, Apple unveiled the iPhone 11, featuring a dual-lens rear camera, automated night mode, and built-in support for vision, hearing, and mobility.

One of the biggest surprises of the iPhone 11 was not its technical features, but its price. The iPhone 11 started at $699, down from the iPhone XR’s previous price of $749, and signaling one of the biggest year-on-year reductions in iPhone history. Apple also implemented $150 cuts on products like the iPhone 8 and the Apple Watch. Tech specialists were quick to comment:

“The biggest news from the Apple launch was the price cut for iPhone 11,” Chris Caso, an analyst at Raymond James and Associates, wrote in a note to investors. “We view this as an admission that Apple stretched too far with the price points at last year’s launch.”

Apple executives were not afraid to adjust pricing to current customers, especially knowing it may encourage upgrades or woo digital streaming subscribers. Lowering prices also increased the likelihood of up-selling related products: people who buy iPhones are far more likely to purchase iPads or AirPods.

Pricing that is “Just Right”

What is the best strategy for pricing the products or services you sell?

At first glance, this question seems pretty straightforward. But in reality, pricing is an art. Pricing well can enhance sales and create a prospering business, while the wrong approach can alienate customers and give competitors the edge.

There are a variety of pricing strategies in business, with some psychological influences in the approach you take. Here are four models to consider.

1. Cost-Based Pricing

The most straightforward pricing strategy is “cost-plus” pricing.

This involves calculating the total costs it takes to make your product, then adding a markup to determine the final price. This method is simple, fast, and lets you quickly add a profit margin to any product.

2. Market-Oriented Pricing

Market-oriented pricing starts from a cost-based perspective but adjusts pricing up or down with an eye on the competition and the customer.

For example, after comparing your products to similar items on the market, you can consciously price your products higher and brand your products as “best-quality” or “better performing.” Conversely, companies that price products low can lure more customers or sell large volumes that easily compensate for slim profit margins.

3. Discounts and Markdowns

Discount pricing is a strategy where items are initially marked high but then sold at a seemingly reduced cost to the consumer. 

This can be especially effective during seasonal demand, inventory liquidation, or when marketing to value-oriented purchasers.

4. Flex Pricing

Flex pricing (or dynamic pricing) allows businesses to manipulate sales based on current market demands.

Flex pricing is at its best on big retail days like Black Friday or Cyber Monday, but can also be linked to timebound marketing strategies. Similar to what many sports teams and airlines do with ticket prices, you can manipulate prices up or down in a timebound fashion.

Coupons are another way to discretely provide dynamic pricing to a subset of prospects or customers. This allows you to attract new users or build momentum during seasonal promotions while remaining profitable.

Dynamic pricing can be challenging but worthwhile. In 2013, Walmart used flex pricing to change the prices of its products almost 50,000 times a month, and with this pricing model, its global sales grew by 30 percent!

Adjust as You Go

You have a great deal of flexibility in how you set prices.

And the good news is this: there is no surefire method to pricing things “just right.” Consider the current pandemic situation, your target customers, eyeball the competition, and hone your marketing to match the pricing strategy you pursue. Experiment, adjust, and see what works for your business.

Is Direct Mail Safe During COVID-19?

In fast-moving and uncertain situations, communication can be a challenge.

While you may have been temporarily stalled by the dramatic changes of the last month, now is the right time to be proactive in your customer connections. Crisis communication specialists tell us that, in hard times, communicating early and often is crucial.

The decisions you make now are essential for your business to survive today and to thrive later on.

Why Direct Mail is Still a Trustworthy Source

Reports of postal workers testing positive for the novel coronavirus may have raised some concerns that the pathogen could live on letters and packages, potentially exposing people to infection just from opening their mail or packages. But the U.S. Postal Service has assured us that the mail is still safe:

“There is currently no evidence that COVID-19 can spread through the mail,” the postal service said recently, alluding to the disease caused by the virus and citing the U.S. Centers for Disease Control and Prevention and the World Health Organization. 

Most businesses are still mailing at this time, but if you have questions about direct mail marketing, you are not alone. It’s important to be ready with answers for your customers, preferably from reliable sources like the Center for Disease Control:

“Although the virus can survive for a short period on some surfaces, it is unlikely to be spread from products or packaging that are shipped over a period of days or weeks at ambient temperatures,” says the CDC. “Currently there is no evidence to support transmission of COVID-19 associated with [mail and packages] and there have not been any cases of COVID-19 in the United States associated with imported goods.”

Because the virus is not spread through the skin, but through the respiratory tracks, any contact with mail or packages is not an immediate danger. Regular hand-washing and proper hygiene are the most important factors for mitigating any risk with envelopes, packages, or really with any contaminated surfaces.

What Kind of Mail Should I Send?

Since people are currently hungry for connection, there is no better time to lean into your marketing efforts.

But be sensitive in doing this, and offer messages of hope and relief. Dartmouth professor Paul Argenti offers these tips for communicating during a crisis:

Focus on What is Important to the Customer

For example, Target sent out a note from the CEO to customers, describing enhanced cleaning procedures and additional staffing for order pickup and drive-up services.

Provide Relief When Possible

JetBlue became the first airline to waive change and cancel fees for coronavirus-related concerns. The move went a long way towards reassuring current customers as well as bringing new ones on board. Insurance companies, in contrast, do not consider the coronavirus a valid reason for canceling a flight.

Focus on Empathy Instead of Pushing Sales

Be creative, but keep empathy in mind. Companies should reshape advertising and promotion strategies to be more in line with the current mood of the day.

Watch for Those Silver Linings

While we’re all in unfamiliar territory right now, everyone wants to support each other.

Businesses care about customers, and all of us care about economic recovery. Keep reaching out to your clients and remember that this is only temporary. While this situation won’t last, many positive outcomes will!

The lessons we learn today can make us more flexible, strategic, and more community-minded.

Responsible Marketing During COVID-19

Fear. Stress. Helplessness.

Whether you’re caring for elderly parents or homeschooling your kids, people across the globe are struggling with big emotions during the COVID-19 situation.

How do you lead well in times like these? While daily leadership is essential for your business, crisis moments reveal the quality of your vision like nothing else. And while you may be exhausted or overwhelmed, now is not the time to push pause on your leadership. What are the “next best steps” you can take in this hour of uncertainty?

1. Increase the Frequency of Communication

During hard times, the frequency of communication should go through the roof.

Even if you have bad news, it’s important to acknowledge this ASAP. While you may not have all the details, a prompt announcement can minimize speculation, reassure panicked contacts, and let people know that you are proactively addressing each challenge.

2. Be Authentic

Now, more than ever, people are craving connection.

Since many of your customers and subscribers are working from the kitchen table, this is an important chance to re-tool your communication. Get in touch with your own feeling of isolation and use this to inform your messaging. From email communication to print mailings, review all your messages through the lens of people who are stuck at home. Ditch the corporate-speak and seek a more human tone for your brand, and use this framework to empower empathy while focusing on others’ needs.

3. Break Up the Depressive Mindset

All of us need a break from 24/7 bad news. So, how can you bring positivity in this hour?

Noting the deluge of video-conferencing, Audi of America recently launched a series of specially curated images to serve as a glamorous backdrop in virtual meeting rooms. Now enthusiasts can bring their favorite Audi with them to their next conference call or virtual happy hour, and Audi plans to release new images weekly. Simple pleasures make a big difference in tough moments!

Now, make it personal. How can you sound a note of joy or generosity today? Could you post a funny video, release a helpful blog, highlight hero stories, or offer incentives that benefit customers or people on the front lines?

Or look at your own product mix and ask: “what could I change to help my customers?” Do you have a paid or premium service that you could offer for free to help people get by over the next few months?

4. Sow Seeds of Honor

When you look at your schedule today, things seem rather quiet and eerie.

Companies of all sizes have sent people home, and every distraction has been silenced. While the coronavirus has ushered in strange times for all, good leaders won’t just hunker down. Instead, it’s time to push back with a different spirit.

In an age of mocking and disdain, today is a great day to show respect and gratitude. Whether personally or professionally, use this forced pause to repair a strained relationship, to say thank you, or to serve others. Make that difficult phone call. Donate blood or serve at your local food pantry. Show public or private appreciation for your leaders. And appreciate people who don’t deserve it (despite their inadequacies).

As you honor people, they will honor others. Perhaps this is a chance to shift the atmosphere and proactively build honor into the fabric of your network. As a leader, you WILL set the pace for others.

Connection is the New Currency

Though today’s challenges are extreme, it’s important to remember they’re only temporary.

It may not be easy, but many of us will come out of this stronger. Though it may feel that the waves are continuing to rise, take heart. Prioritize connection, and the uncharted waters can be parted in order to lead you toward a prosperous future and a newfound hope. 

Add Drama and Depth with Custom White Balance

Have you ever struggled to take a classy (yet natural) family picture?

Or photographed an incredible wilderness scene, only to be sorely disappointed by flat results? If the world has so much wonder, why is capturing that majesty so tricky?

Many photos are simply too dark or too light, with awkward shadows, blinding background rays, or glaring reflections (think Grandma’s glasses!). The color can seem artificial or just washed out. But photos with proper lighting come alive, creating a drama and depth that resonates with viewers on a heart-stirring level.

Whether you adjust your camera on the front end or edit the photo later, here are some tricks to getting the photo balance just right!

Adjusting Your Digital Camera Settings

Different sources of light have varying color hues, so a picture taken with a normal white balance under artificial lighting conditions transmits low heat to the camera’s sensor, resulting in dull yellow or orange shades in the photo.

Though human eyes can automatically adjust lights and color temperatures to “sense” the right color, a camera needs to be adjusted to different lights for accurate color reproduction. By adjusting the white balance setting of your digital camera before you start shooting, you can produce the most accurate colors in your image.

Most upscale digital cameras include presets like these:

Tungsten: Best for indoor shoots under a little light bulb.

Fluorescent: Grabs brighter, warmer shots while compensating for cool fluorescent tones.

Cloudy: Warms up a subject and its surroundings when natural light is limited.

Shade: Useful for warming up the surroundings that have a cooler, bluer tone.

You can also adjust your camera manually by setting a white object as the reference point.

To manually set the white balance in your image, take a photo of something white in the same location (and under the same light) you intend to shoot. Then go to your camera’s shooting menu, choose white balance settings, and select the image you just photographed by pressing the “set” or “Ok” button. This will enable you to customize a white balance setting for your next round of photos, resulting in more neutral, natural shades and less post-production editing.

Mastering Post-Production Tints and Temps

Suppose you get the perfect photo, but the colors aren’t quite right.

Adobe Lightroom can help!

Adobe Lightroom is an inexpensive post-processing program used by designers worldwide. In the past, developing exquisite images required excellent photos, nuanced darkroom abilities, and expensive equipment. In contrast, Lightroom allows even beginners to normalize light tones they weren’t able to land in-camera.

When you’re ready to edit the balance in a photo, here are three methods:

Option 1: In Adobe Lightroom, adjust white balance with the eyedropper tool or use the preset menu that best describes the lighting conditions you shot in.

Option 2: Using the white balance drop-down list, manually drag the “temp” and “tint” sliders in the WB panel to adjust how warm or cool your image is.

Option 3: Select the “White Balance Selector” tool in the White Balance Panel (or for a shortcut, press “W” and scan across your image to locate an area that has a neutral grey color to serve as a reference point). Once you click this grey or neutral area, the appropriate white balance settings will be applied to the entire image.

If you don’t like the result, simply use the reset button to remove all adjustments.

In the Eye of the Beholder

Sound tricky?

Don’t sweat it. There is really no “perfect” white balance because the best contrast is what looks pleasing to YOUR eye. In the end, learning and experimenting is half the fun! Reach out to us if you’d like to learn more about adding the perfect white balance to your next piece.

Ideas for Paying Employees When Finances are Tight

The coronavirus has rattled the world, and while the health consequences are dire, the economic fallout could be worse.

In just one week, from March 7 to March 14, initial unemployment claims jumped by a third, rising from 211,000 to 281,000. And while we don’t know whether workers have been laid off or furloughed, we do know that lost jobs are bad for families, employers, and the nation.

Job losses translate into increased federal spending and a slower response to unemployment claims, and those businesses that have to hire or train new employees down the road will undoubtedly take a financial hit later. Even if it’s difficult, your business can benefit by keeping employees on payroll and by modifying your business plan.

What might this look like? Here are some options to consider:

Lower Overhead Expenses

The most effective response to financial pain is to freeze spending wherever possible.

This may mean holding off on new investments, eliminating projects where costs exceed value, or re-proposing previously rejected cost-savings ideas. Want a more comprehensive guide to cutting costs? Check out this article from the Harvard Business Review.

Consider Alternative Financing

While borrowing may not have previously been in your plans, the Small Business Association is working directly with state governors to provide targeted, low-interest loans to companies that have been severely impacted by COVID-19.

The SBA’s Economic Injury Disaster Loan program may provide the vital support you need during this temporary loss of revenue. Other options to consider are family borrowing, hard money loans, or seeking a float loan from a customer or an external “angel investor.”

Liquify Assets or Discount Existing Receivables

How can you attain missing funds to pay employees in a crunch?

“Beg, borrow, or sell whatever you need in order to come up with the funds,” says Rod Jorgensen, the director of counseling at the Nevada Small Business Development Center. Whether you sell vehicles, buildings, or equipment, put every option on the table for consideration.

Donald Todrin, founder of the Northhampton, MA-based Second Wind Consultants, says taking as much as a 50 percent hit on your outstanding receivables may also be a wise strategy:

“If I’ve got $25,000 out on the street that I’m owed, I’d slash it down to $10,000 on a promise [that vendors] wire me the money today,” Todrin said. “Pay me half [of what you owe me] and I’ll wipe [the debt] out. And you raise cash instantly and overnight. Now you pay a price for that because that’s your overhead money, but you cover your payroll. You got to play for another day.”

Be Resourceful and Keep Employees in the Loop

If you know you are unlikely to make payroll, it’s essential to be honest upfront.

Proactive communication is crucial during a crisis. If finances are tight, tell people up front, starting with the natural hierarchy of company leaders and involving them in the process. Allowing leaders to inform their teams can soften the blow and make it easier to gather feedback.

And be creative. Teams that want to retain employees in extremely tight situations may consider shrinking paychecks across the board or ask the highest paid, top-level staff members to (electively) forgo paychecks for a short time so lower-level employees can still be paid. This spreads out income and grows confidence and unity in your staff.

People First

Though you may not be closing shop, many businesses will experience shortfalls in this season. Creative, sacrificial entrepreneurs will work hard to protect their most valuable asset: people.

Master Font Psychology to Bring Personality and Purpose

If you wanted to make a splash at a spring gala, what color would you wear?

If you wanted to be known for your edgy personality, what kind of car would you drive?

Just as your personal appearance creates emotion or impact, your design choices will too. While we often undervalue text in designs, every font has a unique personality and purpose. A little font change can go a long way.

With that in mind, take a look at font psychology and see how using it well can win customers through print!

How Fonts Influence Emotion

What is font psychology?

Font psychology deals with the impact fonts have on the thoughts, emotions, and behaviors of readers. For example, when you use a Bookman Old Style headline, it’s going to carry a very different tone than a Brush Script or a fanciful Curlz font. When you feature Tempus Sans in primary body copy, it will bring a more contemporary vibe than Franklin Gothic. Once you understand the associations a font carries, you’re on your way to using fonts to create the emotional impact you desire.

Fonts contain features like line, weight, size, and orientation. When you see a font, your brain disentangles those components and associates them with characteristics from the real world. For example, italicized fonts mimic movement (like a runner leaping off the starting blocks), and flowing scripts convey creativity (like a dancer spinning across the stage). Fonts mimic visual characteristics from the real world, so if you want to choose an appropriate font, choose one that visually resembles your context.

Keep it Simple with This Font Cheat Sheet

When you think of the vibe you want to convey, what adjectives come to mind? Basic or bold? Gentle or hardcore? Elegant or gritty? Once you’ve identified the tone you want, here is a cheat sheet you can use to craft corresponding messages:

Slab Serif fonts (or “Egyptians”) are perceived as important, bold, impactful, or attention-grabbing. Great slab serifs include Sentinel, Adelle, Clarendon, Linoletter, Archer, and Amasis.

San Serif fonts are perceived as simple, sensible, straightforward, neutral, and easy to read. Popular selections include Apercu, Futura, Avenir, Verdana, and Avant Garde.  

Simple Serif fonts are seen as stable, respectable, timeless, formal, or traditional. Classic serif fonts include Garamond, Times New Roman, Georgia, and Palatino.

Bold or weighty fonts are seen as dominant, commanding, gallant, significant, and reputable. Have fun with bold fonts like Qanelas Soft Typeface, Nevis, Municipal, or Andor.

Condensed or ultrathin fonts carry a professional, forward-thinking, logical, or influential quality. To sharpen your image, try fonts like District thin, Antipasto pro thin, or Cocotte ultralight.

Vintage fonts come across as old school, retro, stylish, and remarkable. Type outside the box with six different Zing Rust fonts and carefree fonts like Palm Canyon Drive, Parker, or Lovelo. 

Script fonts bring a sense of femininity, elegance, connection, and indulgence. Fun script fonts include Allura, Mistral, or the Segoe family.

Decorative fonts are seen as casual, cool, unique, or high-spirited. Stretch the limits with The Bomb, Circus, Cute Notes, Keep on Truckin’, and more!

Mono-spaced fonts can bring a techy, sophisticated, or smart vibe. To sell your credentials, try Courier, Inconsolata, Maison Mono, or BP Mono.

Display fonts bring a chivalrous, quirky, friendly, or eccentric tone. Use fonts like Amadeus, Anudaw, Bearpaw, and Collegiate to make design twice as fun!

Keep Fonts Front and Center

While fonts are sometimes an after-thought, text is an integral part of your branding and emotional impact. And many online resources are available to help you find fun, free fonts.

Use your font choices to shape perceptions, streamline messages, and project your intent.