Nothing’s more frustrating than knowing your customer can afford the product you’re helping them with but they aren’t budging because they’re too laser-focused on the price.
According to Entrepreneur, what you need to keep in mind is that while your customer may be objecting to price, they’re most likely worried about other concerns, like the ones below:
- Is there a better product out there?
- Will this product solve my problem?
- Will I really use and enjoy the product?
- Am I better off buying something else?
- Do I have enough information about the product to make a decision?
- What will others think of this purchase?
- Am I making a mistake by buying this product?
Once Value is Established, Price Is No Longer an Issue
“Price is what you pay. Value is what you get.” – Warren Buffett
As Price Intelligently points out, Warren Buffett’s quote is a great reminder to view your product from your customer’s perspective. “Customers will only buy your product if they believe that the value they’re receiving is greater than the price they’re paying,” says the site. “Otherwise, why would they pay?”
Popstar, Fergie, has the following to say about her purchasing decisions:
“For me, it’s not about price. It’s about necessity, quality, and usefulness.”
Plan your retail pricing strategy around making your customer see the necessity, quality, usefulness, and value of your product. If you are successful in doing so, the price won’t be an issue.
This truth was made clear by a famous video clip from Penn and Teller’s hidden camera show in which diners were persuaded to try out an upscale restaurant with a reputation as the world’s first boutique vendor of bottled water.
Each table was presented with a menu boasting the finer qualities of water that was supposedly shipped in from mountains and streams throughout the world, some costing up to $8 a bottle.
What the customers weren’t told was that all the water actually came from the garden hose out back (and we’re not suggesting you do something similar).
The vital point here is that people were more than willing to pay more for a product when they thought it offered them “a truly special or significant value” that was presented to them in just the right way. (Source: Inc.)
Establishing A Retail Pricing Strategy
In a world driven by value, you need to put some real thought into how much worth you think you’re offering your customers and charge them accordingly. From there, it’s up to you and you and your retail staff to convey that value to your customers so you can turn them into buyers.
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