According to Les Binet, pricing is the most important ‘P’ in a recession.
At the best of times I’m an annualised pricing fanboy 🙌 but in these tricky times I’m seriously all in 👣 on this approach for its recession-busting abilities for brands.
It’s simple, offer a better deal than the monthly price in exchange for money up-front. Cold. Hard. Solid. Cash. 💷
Why?
1. Cash is king 👑
2. Cash today is worth more than cash tomorrow
3. No need to speculate on fluctuating consumer shopping habits (LTV)
4. Recover your entire CAC immediately (say what?!) 😎
What’s not to love ❤️.
Yet for some, it’s counter intuitive to get a customer to pay more upfront, making it less affordable in hard times.
I think the opposite, it’s a real win-win. 🏆
Customer gets better value for longer and you get vital dosh 💰 you need today with no need to speculate on future earnings.
How can you implement it in your category?
Think hard, it’s worth it. 🤔
