People don't always buy based on the lowest price, but they do
like to feel they're getting a good deal. If your aim is to give
your customers value for their money... then your asking
PRICE should represent the VALUE customers place on your product
or service. If the price asked for doesn't feel right, in
relation to the value delivered, customers are not going to buy.
If the customer thinks that what you are offering them isn't
worth much, then how can you ever hope to charge a high price?
You can't!
The key is to communicate the VALUE message. And you must
communicate it so strongly that the price seems reasonable
in relation to the product or service you're offering.
What really matters is your pricing policy and how you
communicate price to your potential market. Should you offer
a discount? Should you feature the price boldly? Should you
introduce the price early in the offer? These are important
questions because without realizing...you may be educating your
customers to give price their primary consideration. That may
not be your intention, but like it or not, that's what often
happens. The customer becomes price sensitive and then...
SURPRISE! SURPRISE!... A competitor comes along with an even
lower price and you lose a customer.
PERCEPTION IS EVERYTHING
A case in point - A week or so ago, I was exploring a suburban
shopping center when I decided to get a loaf of bread for lunch.
As I walked along the street I came to a supermarket.
Then across the road, I spotted a little bakery. So, off I
trundled to the bakery, "A wholegrain loaf please." I had
committed to buying the loaf just by walking in the door.
Price was not important in my buying decision, something else
was. That 'something else' was perception. Your customers'
perception of you can be more important than your price.
Why did I choose the little bakery over the supermarket -
perception! I perceived that the quality would be better.
But who's to say that the supermarket didn't have a product
equally as good as, if not better than, the little bakery.
So could it be, that by focusing too much on price, we set up
an expectation of a lack of quality in the customers mind?
And could it be, that by focusing too much on price, we create
the impression that our service might be suspect? Absolutely!
DOES IT FEEL RIGHT?
It doesn't matter what you charge. It is the customers'
perception of your price that matters. If the customer thinks
the price is too high in relation to the value delivered for the
product or service, then they won't buy. If they think the price
is too low, then again they might not buy - because, they may be
suspicious of the quality in relation to the price. The price may
not feel right.
A customer perception of what is a 'reasonable price' is more
important than what you want to charge for your product or service.
And the customer decides what's reasonable based on perceived
value for money, not price. It's creating this perception of value
that tells the customer the price is right. I'm a firm believer
that, in the long term, it's always better to add perceived value
to your product rather than reduce your prices.
Customers are smarter these days, have more disposable income and
have more choice than ever before. The key to making the sale is
to communicate VALUE! Do it so strongly... that the price seems
reasonable in relation to the product or service you're offering.
About the Author
Noel Peebles will show you Quick And Easy Ways To Get Better
Results >From Your Advertising...Increase Your Sales At Higher
Profit Margins Than You've Ever Done Before.
Go to http://www.betterbizprofits.com