Music producers it is not a very uncommon thing when you first get started in the leasing business to change your prices like crazy. I mean most of us in the beginning are trying to make sense of this entire business, we’re trying to figure out “OK, should I be competitive and charge only 15 to 20 bucks for my lowest particular lease, or should I separate myself from everybody else and sort of be the Mercedes and the Lexus of my particular industry. And should I separate myself from the very beginning and set a standard”.
Now there comes some pros and cons with each pricing and I go over that in this particular video but to really answer the question at hand, how often should you be changing your prices? I think in the very beginning you wanna find sort of a sweet spot so it’s not uncommon to be changing your prices you know, sort of month to month. But as you start to get more traction, you start to get your first sales, I would say you do not want to change your prices anywhere after 3 to 6 months. I would say that once you start to finally find some traction, you start to really start selling some beats, I would say that every 3 to 6 months is probably the most that you want to be trying to change the prices of your beats, now why is that?
For one you wanna make sure that you’re actually tracking your particular customers and seeing how they’re reacting to the price. You wanna see if it’s something that is actually taking care of all of your overhead expenses, maybe you’re paying a monthly membership with Airbit, maybe you’re paying for a URL, maybe you’re paying for all these different expenses from promotion and you’re trying to figure out OK, how do I make this make sense, where I can maintain my business – not just maintain business but make a profit. Well you’re gonna have to establish from the very beginning, some sort of pricing that you can kind of stick with.
Another reason why you wanna stick with your pricing is because, think of it from the customers perspective. If I bought something from you for a certain price and this was me making an investment, me taking a chance on you and your business, and then all of a sudden, somebody who just came around you gonna give them a better deal than me and I’ve been holding you down for a year, 4, 5 months? It’s not fair, obviously your customer’s gonna look at that and feel a certain way, probably go elsewhere. So, for that reason too, you wanna make sure you stay consistent with your pricing, or if you’re gonna experiment with a lower pricing, try it first on your customers that have already been riding with you. They’re already in your email list, they’re already, you know, sort of vouching for you. Try it with them first. Once you try it with them, what you’re gonna notice is that, they’re going to give you a lot of input, they’re going to either start buying these beats up or say, ah, I don’t know how I feel about these beats being so low, because not everybody has access to it.
Now, when you’re thinking about actually pricing it, and maybe you say, you know what? I have an idea where I wanna price it, understand that every single one of your prices says something about your business. If you go too low, it says that your business most times is a very cheap business, or you really kind of fall in the tiers of a 99c store or you know you fall in sort of the family dollar. I don’t know where it is, where you’re at, what the sort of the discount stores are but that’s exactly what you’re looking like and with that you start to get customers. I found myself one time arguing with a 13-year-old, had no idea, he was trying to haggle me for, I had a 20 dollar beat and he was haggling me trying to get it down to 10 dollars and I was like man what are you doing? Thinking I’m talking to a grown man, no I’m talking to a child. So, that being said, you’re going to attract that energy, you’re going to attract people who say, ah, 20 dollars is sort of a lot, but I wonder if I can negotiate him down. You wanna stay away from that and I’m not saying that’s a bad price, I’m just saying understand the kind of energy that comes along with it.
Now, when you price yourself up into a higher tier, there has it’s benefits in that, you do attract people who really don’t have a problem, you know with going to your price, they just wanna make sure that they get the quality that they’re paying for. Most times you’re not gonna see a lot of complaints from these people, cause they’re used to paying this certain amount of money, for not just their beats but for whatever they feel like is necessary for their, you know, well-being or for their career, they’re willing to invest into it.
So, I guess that would be a pro but a con also sometimes with pricing too high is that you just don’t sell anything, you’re just not selling any beats. So, that being said, you really wanna sit there and think about first of all, your expenses, you wanna think about the message you wanna give off, the communication you wanna give off from your particular leasing business. Also, too, you wanna think about your licensing terms and think about am I giving away a lot for this particular price bracket? Or am I not giving enough? You know? Then you also wanna keep an eye out, an ear out for really trends within your market, you wanna make sure that you are not you know using this archaic pricing systems and yet everybody else out here is caking up because you have not evolved with the times.
So, all in all, I’ll say 3 to 6 months is pretty good to really think about changing your pricing, I would more so lean towards 6 months only because like I said. You wanna stay consistent and you want your customers to feel like their business is valued and that them holding you down has a benefit for them. But all in all, don’t change your prices unless you understand the psychology of why you’re doing it. Experiment with it, have fun and from there, you’re going to see this business can be very fun when you sit there and you’re active within your numbers.