A few miles from my home is a miniature golf course. One day I took some of my high school youth group kids there to play miniature golf. The clerk told me that I would have to pay $12 for each of us to play. I found that to be a little exorbitant, and of course asked why. The clerk told me that we could play as much as we want. I found this extremely amusing since it was seven o’clock and they closed at eight o’clock. I appreciated the fact that the owner wanted to get as much revenue as possible from each person in the door, yet the owner wasn’t there to watch what happened when people go through the buying process.
Of course, I went a few miles down the road and paid half the price since we only wanted to play 18 holes of miniature golf and that was about all the daylight that we had to do so.
I have never returned to the establishment that asks for a fixed fee to play miniature golf and probably never will. On the other hand, if the establishment had offered me a reasonable rate and given me the option of an all-day fee, I would have spent around $200 last year with them. The point that I want to drive home with you is that if you’re non-negotiable on your terms and options that you afford your prospects, you’ll close less sales. This is one of those common sense ideas that most people overlook that can dramatically influence your business.
Every lost prospect is lost revenue; some revenue on each prospect is better than nothing. Don’t back yourself into a corner where you don’t afford people the opportunity to buy. This is why testing is so important. Test offers and prices, determine which results lead to the most return on your time and efforts. If you decide the terms and pricing without getting input from the marketplace you’re guessing what people want rather than knowing what they want. The net result is that you’ll limit the appeal of your offer to a finite segment of people.
Always have a fallback position, and different options. This will keep you from being backed into a corner.