How to confidently sell really expensive products
Have you ever bent over backward to offer your product or service at an incredibly low price, only to have a “meh” response from your target market? A poor response to an “amazing” sale price can send many entrepreneurs into a panic, making them wonder:
- Did the competition get here first?
- Are we out of touch with the market?
- Are we still overpriced?
Each of these concerns can lead businesses down a rabbit hole of lower and lower prices, and fewer and fewer quality customers. None of these concerns gets to the root of the issue.
If you have defined your target market and done your research, you know your market will benefit from your product or service. After all, your beta testers loved it. Why then, when you unveil your new product to the mass market, do the majority of buyers pass on this “great” offer?
Price is not a selling point.
Instead of advertising a price, market the value of that offering. Explain whom the offering is for, what problem it solves, and its ease of use or implementation. Never make the price of the product or service the main focus.
Perceived value can be 2–3 times the actual value.
If your audience knows this product/service is designed for them and that you have solved one of their problems, they will place high value in what you are offering. To them you aren’t selling — you’re helping. And good help is hard to find.
Your selling price must mirror the perceived value.
In short, your price should match the severity of the problem you have solved. To determine the severity of the problem, you’ll need to look backward:
- How much convenience did this product/service bring to your customer?
- How much negative emotion did it help them avoid?
- How much stress was alleviated?
- How did this service/product make your customer feel?
- How did this service/product make your customer appear in the eyes of others?
- How much better did this product/service solve the problem compared with competitors?
- Does using this service/product help your customer make a profit directly or indirectly? (B2B applications, generally speaking.)
- Is your brand (business reputation and image) polished enough to tout a higher price tag? (For example, Walmart isn’t positioned to sell expensive items but Target can sell the same product at twice the cost.)
Taking all of these points into consideration, what is the perceived value of your offering? Weave the answers to these questions into your marketing strategy and don’t talk numbers until you’re ready to ask for the sale because, at that point, your leads will understand the value and be ready to pay.
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