One of the greatest concerns of business owners is how to price their products or services. Often, consumers say, “Well I would buy it if it were in my price range.” And, that idea tempts many business owners to lower their prices–just to sell more products.
However, as you already know, price reductions sometimes create more problems than they solve.
For example, price reductions:
- Decrease net profits
- Lead to the purchase of lower quality products
- Increase customer demands to drop the price even lower!
- Require even more sales to make up the difference in revenue
- Need a larger quantity of products
And, in the end, as John Jantsch (author of Duct Tape Marketing) says, “There will always be someone willing to go out of business faster than you.”
Remember this: price is not a benefit. Selling is not determined on the cost of your product. If you truly “sell” your customers and prospects, they will purchase your products/services no matter what price you determine.
If a customer or prospect doesn’t buy…and they claim the cost had something to do with it…you can guess they probably wouldn’t have purchased anyway.
As a marketer, your job is to sell your products and services. The actual art of selling has nothing to do with the price of the product. By the time your contacts find out about the price, they should be determined to purchase no matter what the cost.
So, find “real” benefits (value) to sell to your customers and prospects. Help them to see how great their life is with your product, and you’ve got a customer. Point out their current pain, and your contact will do anything to get rid of it.
Set your prices and hold fast. If you’ve marketed effectively, you will still have customers anxious to do business with you!