Do you think your customers shop on price alone? If that were the case, there would never be any variation in prices! If your product or service offers fantastic value to the customer, they will be happier to pay more. Here’s what John Davies has to say:
Transcript: When pricing your products in the marketplace, seek to charge as much as the market will accept and build value into your proposition, not cheapness. It’s been proven time and time again that businesses that provide value will succeed in the long term.
If all you have to offer is the cheapest price, eventually your customers will go elsewhere. Make your product or service more attractive by offering fantastic value. Show the customer the benefits of buying from you – what does it mean for them? What problems does it solve?
Understand Your Customers’ Needs
Understanding your customer is key. If you know what they are looking for (beyond simply the product itself) you can seek to fulfil their needs more effectively. For example, let’s say you sell white goods. If someone is looking for a particular model of dishwasher they’ll shop around. If you’re not the cheapest, what value can you add to make them more likely to buy from you? Do you offer:
- a delivery service?
- removal of the old dishwasher?
- a guarantee that’s longer than your competitors?
- additional products and bundles?
The value of those additional services is clear: the customer saves time, money and inconvenience, and the guarantee gives them peace of mind. Emphasise those benefits to your customer!
If you don’t know what sort of additional value you could offer, why not talk to some of your existing or previous customers? As well as giving you useful insights into their needs, it will keep you front of mind with them and could even result in some repeat business. If, rather than attracting customers on price alone, you focus on creating fans of your business based on the value and the benefits they receive, they’ll come back time and time again, and they’ll recommend you.