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NEWSLETTER
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Volume 27, 2004
Making the Offer Increasingly Irresistible
Everyone wants a bargain. It's human nature. Which is why the success of your infomercial depends on making your viewers truly believe that your offer is one they simply can't pass up. And the way to do that is to plan your offer very carefully before you ever begin production of your infomercial. The process is one of "building your offer", making your total package increasingly irresistible from the beginning of your infomercial to the very end.
Start by establishing the value of your product. The best way to do that is to point out how much people have paid for this product, or similar products, in the past. Or simply ask your viewers to guess what the product would sell for at retail, or ask what they would pay for your product if they saw it in a store today.
Once you've established the "perceived" value of your product, you can begin building your offer, giving your viewer greater incentive to act each step along the way.
First continue to work the price down from the perceived value price you established early on. Then progressively add on incentives. Throw in accessories or companion products. Give viewers the retail value of each add on, of each bonus item or premium packaged into the deal. All along the way increasing the total value, as you lower your total package price.
You can also build greater and greater value by offering extended warranties. Or simply offer increasingly more generous terms, deferring payment, or actual purchase, well into the future. After all, there is nothing more powerful than the "money back guarantee". Except maybe the offer to defer billing the customer's credit card for 30 days! Sure you'll get more returns this way. You will, however, capture card information and build a database of DRTV customers for future products and offers.
Finally, add the element of immediacy. As you build your offer, making it more and more irresistible, let your viewers know that this is a once-in-a-lifetime opportunity. And it's all theirs at this special TV offer price if they "act now."
But first things first. Before you approve your script, take a good hard look at your margin of profit and determine just how much room you have to work within. Based on that margin, you can keep building on your offer, continue to increase the perceived value of your total package, and close the deal by offering the world the bargain of a lifetime.
Definition of the Day:
Premiums: Extra products or services added to the main offer as an incentive to buy. Also called "sweeteners" or bonuses.
Tip of the Day:
A mark-up ratio of 5-to-1 offers your product the best chance for success in a DRTV campaign. A ratio of 3-to-1 is most likely too low for success in this format, except for some high ticket products.
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