There is a general belief that; if it costs more, it sure must be better – do you agree with this too? High pricing policy doesn’t guarantee great sales; but it sure gives your brand a presence that attracts high class personalities; which guarantees improved profitability.
If a business charges 40 percent more than his nearest competitor, it must have near preternatural powers to invigorate its clients. Cold stone creamery sells ice cream at a price higher than what you will get in Shoprite yet people patronizes this brand and it makes sales like no man’s business.
Price and quality are inextricably linked in the minds of most customers. Price yourself low and customers worry that you cannot be any good. Price yourself high and you may become more exclusive, more experts, more of a draw.
Think about the number of times you’ve entered shopping mall to get a particular product, there is always an inner voice that tells you that; the expensive brand has a greater quality compared to the ones with lesser price.
There is a way you just feel like inferior goods are cheap while qualities are expensive. As sellers, we often think that; if we offer our products or services at a cheaper price compared to our competitors, we will draw customers’ attention and win their heart.
Strangely, businesses occasionally benefit when they push their prices up, reporting they lose some customers but gain others. They may lose some of the undesirable customers, the kind that take a long time to make up their mind and worry about the little money they do have to spend.
But, they gain customers who value quality over prices, those that celebrate excellence over the pennies to spend. The volume of the business may decrease but profitability will improve.
I’d like to let you understand this; competing by offering the lowest price is not really competition at all. Most customers prioritize quality over prices. The danger of low pricing is this; you might have to lower your quality in order to stay in business.
This will make you lose customers who patronize your brand for the quality than for the low pricing. Your brand will suffer a damaged reputation when quality drops. You must be willing to play with your pricing.
Sometimes, we sell at cheaper price because we feel our competitors are bigger and have a name already. If the quality of your product and service can compete with others – then let your pricing policy worth the competition.
If as a buyer, there have been times you think the higher the price, the better the quality; then it’s important you start imbibing your buying sense to your selling strategy. I explained how to think like the buyer in https://upen.com.ng/2019/04/29/think-like-the-buyer/
I want to see you winning and really happy. I’m available to help you grow your brand.
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Your PR Specialist.