This is a continuation of our Pricing Power – 10 Proven Pricing Principles posts. If you likethis topic, then you can see the prior posts here. Read the introductory post to understand the purpose of this set of articles and how they came about.
Principle #10: A good business has the ability to raise prices. If your business doesn’t have that ability – you might need to reconsider things.
This post has been truncated so that the full collection of pricing principles can be placed on the Kindle platform as Craft Pricing Power. For the spring of 2014 you can download it for free on the last Friday of every month. Get it here.
A virtuous spiral is when you do one thing well and have success, and it sets the stage for you to either,
1. Do it again, or
2. Do something similar because you’ve proven your success through the first effort.
Here is an example –
One of the best things you can do for your auction business is to start a virtuous spiral, aka a positive reinforcing feedback loop, and ensure you stop failing, aka a negative reinforcing feedback loop.
As an Ebay seller, your credibility matters tremendously, if you’re going to get prices higher than the average auctioneer. If you want to get a ’fair market price’ for the digital camera you are listing, fine, just depend on your Ebay seller rating, and the wisdom of the crowd, and you‘ll probably be alright.
But if you want to get a premium, you have to justify the added price, and one component of that justification will certainly be an assessment of your credibility and trustworthiness.
We all know it’s true in life – People WILL PAY to work with a credible seller. You need to be perceived as one immediately. Here are 7 Ways to increase your credibility, (there are lots more, but this is a pretty good list):
- Have an Ebay store. (It looks more established than a non-store owner).
- Have a robust ’about me’ page.
- Have the PowerSeller status symbol if you can, (but don’t give away the farm to get it).
- Having the Top Rated Seller status symbol.
- Sending emails to your Ebay mailing list, (and off Ebay mailing list), and discussing the prices you’re getting for your items. It’s not bragging if you word it properly, and it sends a very important message, it tells everyone how OTHER PEOPLE are treating you and your goods.
- Have stunning photography. Amateurs take bad pictures with bad cameras. Don’t do that!
- Re-quote your best customer feedback often and in lots of places. This is called social proof.
- Have a blog or other off eBay place where people can read more, see more, learn more. You are allowed to have a link to sites like this in your about me page.
- Have a user id that means something, looks well thought out, and implies credibility. If you don’t have that set up right now, you can change it.