How to Use the Starbucks Tactic to Raise Your Prices

by G.E. Masana

By now, you may know you need to earn a little more than you currently do if only because Starbucks just introduced it’s most expensive coffee ever.

At $7 for a 12 ounce cup, or $40 for an 8 ounce bag, their new specialty coffee sells at about a 50% premium over their already higher priced coffee.

But coffee is… coffee. It’s water and roasted beans. In a paper cup.

In other words, coffee’s a commodity. You can get coffee anywhere, anytime.

And that’s why this article is an important article for you to read, because if you’re a wedding photographer or a planner or a florist or in any capacity serving the wedding industry and feel you’re seen as a commodity too, then you have to wonder:

What can you take away from Starbucks’ example to help you break through your pricing barrier?

Here are some clues on how to do just that gleaned from Starbucks’ own announcements about their new coffee:

“It’s made from a rare, difficult-to-grow varietal called Geisha.”

Announce Its Exotic Value.

Starbucks justifies the higher price by explaining that Geisha plants don’t produce many cherries, which makes the beans extremely rare.

If it’s rare, if it’s difficult to acquire, or costly to acquire, and that increases its perceived value.

What else can you do?

Add Social Proof of Demand.

“We have loyal reserve customers who are interested in any opportunity to try something as rare and exquisite as the Geisha varietal,” a Starbucks spokesperson said. “We are now offering more reserve coffees than ever before because of customer demand.

If you see others want it, you may be more prone to think maybe it’s something you better not miss out on too.

Toss in a Romanticized Hook.

For example, recently, the Mast Brothers, chocolatiers in Brooklyn, NY, embarked from Cape Cod on a voyage which took them to the Dominican Republic and then to New York Harbor aboard a three-masted sailboat. The boat itself, a working vintage inspired sailboat, took twenty five years to build. From South America, the brothers brought with them 400 bags of cocoa beans grown on privately owned farms and co-ops.

They could’ve bought the chocolate without ever stepping foot out of the U.S., of course. But now they have a story to tell. A story of how they adopted the old world ways of a hundred years ago sailing the seas in search of delicious delights to bring home. It’s a story crafted to capture the listener’s imagination. Suddenly, it’s not just about any old chocolate anymore.

And their bars sell for as much as $10 in places like Whole Foods.

Enhance its Context.

Just as a coffee bean is a coffee bean, isn’t a cocoa bean just a cocoa bean? Yet the Mast Brothers talk about how cocoa beans were regarded as currency centuries ago by the Aztecs. How cocoa beans have been called “The Food Of Gods” for hundreds of years. These associations are intentionally pointed out to elevate what is otherwise a comparably mundane commodity into a stratosphere of its own.

Differentiate the Process.

The Mast Brothers would happily tell you about how they follow the old world traditions of hand sorting their beans, which leads to a three day long process during which the beans are aged and tempered. They’ll point out how this is an “old way… of handcrafting food.”

There may be a few different ways to make what you make. But when you give the process a starring role, the story of the making of the item adds perceived value.

How do you apply this?

This is all about turning the ordinary into something extraordinary.

For a photographer, this may be a story of an imported, little known fabric you use for album material. For florists this may be about a certain bloom and its legend, or a bouquet making technique, its tradition handed down through generations. For a planner, perhaps it’s an exclusive vision they lend to the wedding, inspired by wedding customs from lands far away.

What other ideas can you get from Starbucks, the Mast Brothers, and others selling what’s typically viewed as a commodity, that can help your business grow and profit?

 

G.E. Masana is a NYC wedding photographer and author of “Advertise and Sell Your Wedding Photography” published by Marathon Press. His roster of wedding clients have spanned from the Beauty Editor of ELLE to models, actors, cinematographers, designers and even a NYC art gallery owner, to the “Chief Strategic Officer” of one of the world’s largest interactive agencies, and previously was on “The List” of contributing photographers for Martha Stewart Weddings.

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How To Reduce Price Quibbling

 

angry-brideIt’s a well known fact: brides quibble about prices with almost every single wedding vendor. Why is this the case? Well obviously a part of it has to do with the economy. The main issue however is rarely mentioned.

Brides have trouble with your prices not because they don’t want you to make a living, but because they don’t understand the value of your product or service. Telling them how wonderful you are isn’t going to solve the issue. The question isn’t how great you are, it’s a question is why they need you in the first place. Every bride has this underlying belief that they could do everything themselves if they had the time.Geoffrey James points out in his article that what you have to communicate is why they need you. What are you helping them accomplish? What is the pain (real or imaginary) that you are solving? Why would they be happier going with you rather than anyone else?

If you can answer these questions and incorporate it in your sales pitch in an upbeat way, you are going to see a decrease in brides who try to talk your prices down below what you are worth. When a bride understands how much she needs you and how valuable your product or service is, she isn’t going to be as concerned about the bottom line. What do you think?

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Why Brides Aren’t Willing To Pay Mid Range Prices

 

Simple_CakeJust five years ago the market was relatively strong, and weddings were notoriously over the top. Everyone wanted the big wedding, and most of them got it. One year later things went spiraling down so fast it left people and businesses with their heads swimming, and has take the last four years to start seeing some answers to how to handle the new economy.

Something that is often overlooked by businesses is that according to J. Walker Smith apparently people in middle budget bracket have, at least currently, almost disappeared. People who used to fit in that category are now struggling to pay bills, let alone spend a huge amount of money on an event like a wedding.

What this means to the wedding industry is that you as a business owner have to realize that you aren’t marketing to middle budget brides anymore. You are marketing primarily to low budget and high budget brides. Perhaps this is a big part of the puzzle in understanding why it’s so hard to marketing to today’s bride. What do you think? Have you had many middle budget  brides in the last few years, or are you seeing a new influx of middle budget brides in the market?

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To Show Prices Or Not Show Prices On Your Website

 

Dress_ShopDeciding whether to show your prices on your website is tricky. Most often wedding vendors choose not to show prices as the packages can depend on each particular wedding. At the same time, according to the article by Shane McMurray on The Wedding Report, 81% of brides want to see prices on your website.

The pros of showing at least some of your prices are to give a bride an idea of what she really wants, and whether she can even afford you in the first place. The cons are that it can set unrealistic expectations by the bride as well as have her focus on the price, rather than the quality of your work.

Something that I have seen recently is wedding businesses who will show two to three packages on their website and then encourage the bride to contact them for additional packages that will fit their needs best. What do you think? Is giving a bride a ballpark figure helpful or detrimental to your business?

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