As a long time fan of A. David Silver’s
Demonstrable Economic Justification (DEJ) Factors, today
I’d like to share an insight or two about one of the factors
that I’ve found particularly useful.  In fact, since running
across this little nugget many moons ago, I consider myself
to now be what I like to call a Value-based Marketer.

What’s a Value-based Marketer?

Well, I like to think that it’s a marketer who executes
their business development strategy in consideration
of the DEJ Factor of Optimal Price/Cost Relationship.

In effect, this factor advocates the importance
of understanding that the price/value of the solution you’re
offering should be less than or equal to the perceived
cost of the problem.

For example, consider the Newbie Marketer who is maxing
out the old credit card spending $500 per month to promote
his/her business knowing full well that all he/she can
reasonably afford is about $100 to $200 per month.

Enter the solution, Building on a Budget which offers
to solve their $500 per month problem with a solution
priced at a one-time $49.95(NOTE: the discount is still
in effect at this writing.) backed by a 90 day guarantee.

I’m sure you’d agree that this is a great example of
the Optimal Price/Cost Relationship. 

On the other hand, consider that same Newbie Marketer who rather
than consider the value of Building on a Budget, is star-struck
by Dr. Guru and his $10,000 2 day Traffic Explosion Seminar
(No Refunds).

Let’s see…

Problem Cost  -  $500 per mo. x 12 = $6,000
Solution Cost -  $10,000 One Time (No Refunds Allowed)

This is NOT an Optimal Price/Cost Relationship.

I’ve found that when you take optimal price/cost relationship
into account, there are significant benefits.

To name a few…

1.  You can make an objective assessment of offers/programs
you may want to consider adding to your portfolio of income
producing assets.

2.  It forces you to ask yourself if you have a solution for
which there isn’t really a significant problem.  (The old
offer it and they will come syndrome)

3.  You can frame your ad copy to influence prospect perception
of problem cost, then introduce your solution at an optimal
price point.

4.  You can avoid falling into the Newbie Marketer trap, even
if you’re not a Newbie Marketer by being a Value-based Marketer.

Try it…you’ll like it!

Until we correspond again,
Wayne Brooks
Wayne aka Coach Cashflow
Your Online Business Advisor
P.S. Want to know how I learned to
convert marketing expenses to income
and how you can too?!  Here’s how…