Many are scared to this, especially now. But it can work wonders if you really offer more in-demand benefits in your product or service than your competitors. You can put this little tweak easily right in your ads too…
This technique works even better if you have a unique selling proposition. What is this technique?
Charge a higher price
Why? Well most people relate higher quality service to higher price. “You get what you pay for” is the general attitude. It’s true often enough for most people to accept it as the norm.
If you can market benefits that most of your competitors don’t provide, that also offer elegance, class, and/or save time, you can increase your credibility by charging a higher price.
Look at this this way, wouldn’t most people be skeptical of a Bently or a Rolles Royce price for $28,000, priced in the area of most economy cars?
Exactly! There’s something attractive of the high price itself if it increases its value in your customer’s eyes. Most people want to buy stuff that gives them a bump up in status too. Jay Abraham advises higher prices for higher quality service to increase perceived higher quality
It takes a little research and practice to do it reasonably. It doesn’t seem reasonable or marketable to charge $1000 for golden Q-tips. So research and track the results of new prices until its optimized (that is, profit maximized).
You might lose some buyers, but that’s why you calculate your profits before the price change and after. If after the change your profit is lower, your price is either too high, or you need to add more in-demand benefits and promote them to increase perceived value.
It’s easier to compete on quality than on price too. Big retailers can charge low prices much easier than small or home businesses because they get discounts by economies of scale. Better quality is a better way to go.
The best part about higher prices is that each sale gives a bigger payoff. That’s always fun 🙂