Everyone wants to know about sponsorship pricing. And the expert response is to base the price on what it’s worth to the sponsor, not how much you want or need. Price should be based on value. But that’s really hard information to put into practice, I know.
The truth is that your sponsorship package price is just like Goldilocks and the three bears. It is either: too expensive, too cheap or just right. You rarely hear the it’s-too-cheap response. Most often, you hear ‘it’s too expensive’.
The truth is, ‘it’s too expensive’ usually has an underlying meaning and it’s this: the value to us doesn’t match up with the price.
Too expensive means something specific to everyone. Too expensive doesn’t always mean someone can’t afford it – sometimes it does, but mostly it doesn’t.
Ever bought a $500 sandwich? Probably not. And I bet you have more than $500 in the bank. Just because you have the money doesn’t mean it’s not too expensive. It means you don’t think a sandwich is worth $500.
Now, let’s talk about something a little bit more reasonable – a $50 burger. You probably wouldn’t buy a $50 burger 364 days of the year. But let’s say you’re on a date with the girl of your dreams and you really want to impress her. That $50 burger is boasting gourmet cheese, a specialty-blend spice rub, a homemade bun and Kobe beef.
With this burger, you can impress her with your knowledge of gourmet food. You can show her you know the value of good quality. You’re not cheap. You’re getting a $50 burger.
But, as delicious as that burger is, you’re not paying $50 for the burger. You’re paying $50 for what it does for you. The value is how she perceives you. A memorable date. Maybe a second one.
You were the right customer for that $50 burger on the right day at the right time. You needed a $50 burger. You probably would have paid $100.
There are some people that will never pay $50 for a burger. That doesn’t mean that it shouldn’t exist – it just means that they’re not the right customers for that restaurant. The same applies to your race car.
If you’re providing value that matches up with what you’re asking for it, ‘it’s too expensive’ rarely means ‘we can’t afford it.’ You need to surround yourself with the type of people that think what you do is worth what you ask.
You need to find your $50-burger-lovers.