Power Your Profits With Price And Perception



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Summary:
People don't always buy based on the lowest price, but they
do like to feel they're getting a good deal. If the price asked for doesn't
feel right, in relation to the value delivered, customers
are not going to buy.

If the customer thinks that what you are offering them
isn't worth much, then how can you ever hope to charge a
high price?

What really matters is your pricing policy and how you
communicate price to your potential market. If they think the price is too low, then again
they might not buy - because, they may be suspicious
of the quality in relation to the price.
Article:
People don't continuously buy based on the lowest price, but they
do like to feel they're getting a good deal. If your aim is
to give your customers value for their money... then your
asking PRICE should represent the VALUE customers place
on your product or service. If the price asked for doesn't
feel right, in relation to the value delivered, customers
are not going to buy.

If the customer thinks that what you are offering them
isn't worth much, then how can you ever hope to stuff a
high price?

You can't!

The key is to share with the VALUE message. And, you must
communicate it so strongly that the price seems reasonable
in relation to the product or service you're offering.

What really matters is your pricing policy and how you
communicate price to your potential market. Should you
offer a discount? Should you feature the price boldly?
Should you introduce the price early in the offer? These
are important questions for without realizing ...you
may be educating your customers to give price their
primary consideration. That may not be your intention,
but like it or not, that's what often happens. The customer
becomes price sensitive and then ...SURPRISE! SURPRISE! ...
a competitor comes furthermore with an even lower price and you
lose a customer.

Perception is everything!

A case in point - A week or so ago, I was exploring a
suburban shopping center when I decided to get a loaf of
bread for lunch. As I walked forth the street I came to
a supermarket. Then over against the road, I spotted a little
bakery. So, off I trundled to the bakery, 'A wholegrain
loaf please.' I had impassioned to hire purchase the loaf just
by walking in the door.

Price was not important in my marketing decision, something
else was. That 'something else' was perception. Your
customers' perception of you can be more important than
your price.

Why did I think good the little dairy over the supermarket -
perception! I perceived that the quality would be better.
But, who's to say that the supermarket didn't have a
product equally as good as, if not control than, the
little bakery.

So could it be that by focusing too much on price, we set
up an expectation of a lack of quality in the customers
mind? And could it be that by focusing too much on price,
we create the impression that our service might be
suspect? Absolutely!

Does it feel right?

It doesn't matter what you charge. It is the customers'
perception of your price that matters. If the customer
thinks the price is too high in relation to the value
delivered for the product or service, then they won't
buy. If they think the price is too low, then in any event
they might not buy - because, they may be suspicious
of the quality in relation to the price. The price
may not feel right.

A customer perception of what is a 'reasonable price'
is more important than what you want to tilt at for your
product or service. And the customer decides what's
reasonable based on perceived value for money, not price.
It's creating this perception of value that tells the
customer the price is right.

I'm a firm communicant that, in the long term, it's permanently
better to add perceived value to your product rather
than reduce your prices.

Customers are smarter these days, have more disposable
income and have more surpassing than ever before. The key
to making the sale is to VALUE! Do it so
strongly... that the price seems reasonable in relation
to the product or service you're offering.

© Noel Peebles. Market Leaders Limited. All Rights Reserved.
http://www.instantsellbusiness.com
http://www.instantsellhome.com



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