cash-registerIn the last edition of the Leading Learning newsletter we asked subscribers to share some of their toughest pricing questions. Here – with a little bit of editing to remove identifying information – are responses we provided to some of those questions.

1. Does a significant price reduction normally enhance sales? Do price reductions communicate a reduction in the product’s value? We’ve experimented with discounts and sales, but have had worries that it devalues the brand of our courses. We have also not seen great results from the promotions we have ran.

The impact of a discount will depend on how “elastic” demand for a product is, and really the only way to find that out is to experiment. (Elasticity is always historical – there is no formula that can predict it reliably.)

In general, be careful with discounting. Don’t discount unless there is a specific strategic aim in doing so. It is highly unlikely you will “make it up on volume” with any discount you run. Conversely, the “zone of indifference” that most buyers have to pricing changes stretches in both directions – you probably have room to raise prices by as much as 10 to 15% without anyone noticing or caring very much. (See our video on 3 Axioms of Pricing for additional explanation of this point.)

If you do experiment with discounting, limit the time and communicate a clear reason for why you are discounting – this will help address your second question above about perception of product value.

Discounting can definitely impact value perception, so be cautious. Indeed, the better strategy often is to keep price the same, but add value in some way – e.g., a bonus for taking action now – rather than discounting.

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Tuesday I attended a presentation and discussion led by Seth Kahan—the thoughtful and intelligent guy behind VisionaryLeadership.com. The talk was entitled “Surviving and Thriving in the Age of Business Disruption,” and while there was a lot to think about in what Seth said, I found his three stages of the evolution of associations particularly interesting—particularly because it made me think of our Value Ramp.

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Sing to Your Learners: What Value Sounds Like

February 5, 2015

Bob Dylan has a new album—Shadows in the Night—and he gave a single print interview about it. The exclusive (and Dylan’s first interview in nearly three years) went to AARP. The long interview (roughly 9,000 words) was quite the snag for AARP. But they didn’t go looking for it. Dylan brought it to them. Bob […]

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What tacit value do you offer?

February 2, 2015

Most education businesses, in our experience, need to spend more time reflecting on and clearly communicating value. “Quality” in the abstract is not value. Nor is “interactivity.” These are features. They speak to the nature of the experience, but not the impact. Convenience may represent value. Timeliness may as well. But these are not strongly […]

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How to produce a tiger in the marketplace

January 27, 2015

Before he left on a trip to the state of Zhao, Pang Cong, an official of the state of Wei, asked the King of Wei whether he would hypothetically believe in a single person’s report that a tiger was roaming the markets in the capital city. “No,” replied the King. Pang Cong then asked what […]

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A Peak at Our Value Ramp and Two Upcoming Learning Opportunities to Help with Your Learning Technology Selection

January 7, 2015

At Tagoras we try to apply what we preach about the field of lifelong learning. Learning, after all, is about changing behavior, which implies application. An underpinning of much of what we preach about learning is value. As Jeff noted earlier this week, we take seriously the idea that education should be an investment. A […]

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Is your education an expense or an investment?

January 5, 2015

It’s an essential question to ask both about how you perceive your own participation in professional development activities as well as about how your prospective customers perceive participation in your organization’s offerings.

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A Virtual Track for Your Conference: Low Price and High Value [Guest Post by Lloyd Tucker]

December 15, 2014

This piece is written by Lloyd Tucker of e-Learning Solutions, a consulting company that assists associations in starting and expanding their e-learning programs. Prior to founding e-Learning Solutions, Lloyd worked in the association space for two decades. Most recently Lloyd was deputy executive director and director of education and membership for the Society for Technical […]

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Leveraging Microlearning for Professional Development and Continuing Education

December 11, 2014

The additional posts in this series are: Leveraging MOOCs for Professional Development and Continuing Education Leveraging the Flipped Classroom for Professional Development and Continuing Education Definition of Microlearning In contrast to traditional educational experiences, which tend to be designed in 50 to 90 minute units, microlearning experiences may last anywhere from a few seconds – the […]

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Leveraging the Flipped Classroom for Professional Development and Continuing Education

December 9, 2014

Other posts in this series: Leveraging MOOCs for Professional Development and Continuing Education Leveraging Microlearning for Professional Development and Continuing Education

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