HOW I ESCAPED COSTCO WITH A $3.49 RANSOM

A few years ago I stopped at Costco (my favorite store) on our way to a social event. The host of the dinner party had asked us to bring a bag of chips and Costco was conveniently on the way.

As I was checking out at the register, the cashier asked me if a I had found everything I needed. I responded that I had, and then glibly added "wow, I got out of here for less than $100." 

Her response is one for the ages:

"See you tomorrow!"

Her words proved to be prophetic because we were back the very next day for our regular Costco run (I have five kids . . .). This time instead of $3.49 the total was $349. 

So my fellow Costco loving friend, what's the point?

Costco has done a masterful job of delivering great value for its customers. 

• The produce is fresh
• The store is clean
• The prices are fair, even though they have premium products
• The selection is amazing

When you are pricing your product or service think like the master pricers at Costco: 

How can you add value so your customers will be thrilled to keep paying you for the privilege of doing business with you?

You want your customers to be thrilled to give you $3.49.

You want them to be happy to give you $349.

And we haven't even talked about $30,490 or more.

More than anything we want our customers to keep coming back!

It's no secret that I LOVE SUBSCRIPTION business models. 

And yes, Costco has a subscription model built into its annual membership.

Your business may not be Netflix, but is there a way you can add some form of recurring revenue?

How can you give more value than you are capturing with the price you are charging?

Here is the real challenge: next time you are in Costco see if you can get out for only $3.49.

Copyright ? 2020 Michael Peterson. All Rights Reserved