Many marketers and online business owners make the mistake of thinking that every shopper is money-conscious and always looking for rock bottom prices. This could not be further from the truth. Think of the difference between a Toyota and a Lexus and you will see there are a range of factors that influence a purchasing decision beyond just price.
Show Them the Value
Customers will pay more if you show them the value of the item; that is, the reason why your product or service is priced higher than those of your competitors, but how it also offers real value.
Price and value are not the same thing. They can be related to each other, but they are not the same. A Toyota is not perceived as having the same value as a Lexus, even though they are made by the same company.
Why would this be the case? Marketing helps create this perception. You can do it to with your products as compared with your competitors’.
For example, imagine that two online booksellers have stocked the exact same book. However, one will offer a free preview to read while you wait for the book to come in the mail. Then imagine they will give you the full book in digital format too, for a slightly higher price. People might love the convenience of two books for the price of one. They can read in either format, and then give the paper book away as a gift if they wish, for example.
Your Unique Selling Point
In other cases, the difference will not be so clear-cut, but the whole point of your marketing will be to distinguish your brand and products from others. This is commonly referred to as your unique selling point, or USP. Your USP answers the question: Why should people do business with YOU?
Reasons might include awards, industry status, your educational background, experience, and so on. For example, if you are a financial coach with an extensive background working for Fortune 500 companies who can provide insider secrets on how to make smart investments, your services will be in more demand than someone without the same authority and “street cred”.
Add Value without Spending a Lot
You can also add value to your products and services without spending a lot of money or time. In this way you can create the impression they are getting an even better deal for the price, even if your price is higher.
For example, you can create a range of bonus items to support the product or service you are trying to sell. You can create checklists, FAQs, worksheets, a quick start guide and other valuable information which will help people make the most out of the product.
You might also create demonstration videos of the product to show people how to use it, and give lots of hints and tips. With online education booming, and video marketing as well, making quick how-to videos can be a great way to increase the perceived value of your offerings.
A free Facebook group, members only email lists with coupons, special offers and so on, and a special customer support portal with FAQs can take a little time to set up, but add up to big bucks.
By branding yourself as a company that offers real value for money, it will be easier to make more sales and retain customer loyalty. Customers will pay more as long as you are clear about the value of what you were offering, so they will feel as if they are getting the best deal possible.