How to Justify a Higher Price for your offering

How to Justify a Higher Price for your offering

How to Justify a Higher Price for your offering 
Summer 2012, Asia Volume 4, Number 4

How to justify a higher price for your offering?

As much as we want to tell our customers it is our job to maximize profit, sales revenue or ensure growth in our company, the cold and hard truth is that the layman can’t understand this. Furthermore, speaking in economical jargon would merely make consumers think you are pulling the wool over their eyes with your fancy words. How do you convince them that what you’re offering is worth the price? After all, 85% of the time consumers’ buying decisions are based on price.

BE

LONG-WINDED

In this matter, being elaborate is beneficial. Be truthful with the customer and tell them upfront what the key resource was in making that product that it demands such a price. Allow room for queries; if you keep talking they’ll find you pushy, judge you for it and walk away without buying anything. If the customer is being stingy with the price, acknowledge that it is pricey, but don’t be patronizing. Sincerely listen to their hesitations too, perhaps you could offer them something else to suit their needs. Forget that commission once in a while.

MAKE A

LIST

Make a list of general reasons why your product is worth more than what it is priced at, then memorize. As a rule, think of ten. Tell your customers clearly how they’ll benefit, why it can’t be substituted and most importantly, how much they would actually be saving. Try not to be over-zealous as it would kill your whole persuasion. Never make an anticipated move, ie. Putting the item into a bag and telling them you’ll help them carry it to the counter is not helpful at all!

KNOW THE

PRODUCT WELL

You are halfway there once you know the product inside out. That way, you’ll know exactly the market it caters to and you can focus your attention solely on that market. Don’t try preaching to everyone that comes your way. Look for an interested face: an open, questioning look with quick, discreet glances your way. Approach kindly and through interaction, decipher if they need they would truly need the product. If they don’t, don’t push but if they do, they go home happy and your cash register rings. They won’t think twice about the price if they need it.

60 Seconds

is All it Takes
to Know a Little More
Quick Tip1

Be truthful with the customer and tell them upfront what the key resource was in making that product that it demands such a price.

Quick Tip2

Tell your customers clearly how they’ll benefit, why it can’t be substituted and most importantly, how much they would actually be saving.

Quick Tip3

Know your product inside out. That way, you’ll know exactly the market it caters to and you can focus your attention solely on that market.

Quick Tip4

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