Do you believe that lowering your prices is the only way to compete? If you do, you are missing out on a significant opportunity. Price is not the only factor in a customer’s buying decision. Indeed, even if your product is almost identical that that of a competitor, there are lots of ways that you can justify charging a higher price. Here are ten ways to get customers to pay a higher price for your products.
1. Emphasize Quality
People expect to pay more for high-quality products. So, don’t be shy about emphasizing why your product is superior to your competitor’s offerings. It is not usually a good idea to openly knock the competition. Even so, you can make sure that you have highlighted the quality aspects of your products that your competitors lack.
2. Make it Easy to Buy Your Products
When people make their mind up to buy something, they don’t want to be burdened with a complicated buying process. So, make the purchasing of items from you as pain-free as possible. Streamline your ordering or checkout processes and offer multiple payment options. Customers will be willing to pay more if you make buying your products fast and easy.
3. Speed Up Your Deliveries
It’s all about instant gratification these days. No one wants to be hanging around for weeks waiting for the shiny new toy to arrive. So, people will be more than happy to pay a premium if they know that they will get their hands on your product faster.
4. Improve Customer Service
Even if you have the best product on the market, customers will choose the company that offers the best customer service. Emphasize the high level of customer service and support that you offer. And follow through with those promises with the customer service that you deliver. If people feel like they are being taken care of and are valued, they won’t be put off by a slightly higher price.
5. Humanize Your Brand
People prefer to buy from people who they consider to be their friends. You can’t be best friends with all your customers, but you can use branding to make your business more approachable and human. Try to engage with customers whenever you can and make your brand message resonate with your target audience. Once you have built a relationship with your customers, you will find it easier to charge them higher prices.
6. Get People Talking About Your Products
Social validation is a powerful marketing tool. You can play on the human instinct to go with the crowd and increase your prices at the same time by encouraging a social conversation about your products. Get people talking about your brand by engaging with customers on social media, and make it easy for people to leave reviews of your products. Many people will choose the product with the most positive reviews, even if that product is more expensive.
7. Lower the Ongoing Cost of Ownership
If your product’s ongoing cost of ownership is low, you can charge a higher initial price. A lower cost of ownership might come in the form of lower maintenance fees and less expensive add-ons. A product that will last for longer will also demand a higher price. Even a relatively inexpensive product would be more appealing if it had replaceable or rechargable batteries, for example.
8. Make Your Products Easy to Use
Ease of use is another feature for which customers will pay a premium. So, design your products with a view to customers gaining the maximum benefit for the minimum of effort. Ease of use can be especially important when it comes to products that require assembly. If your product is delivered ready to use straight out of the box, you will be able to charge more than you would for a self-assembly product.
9. Highlight Unique Features
Make a point of highlighting any features that your competitors’ products do not have. Even a minor product feature can increase the perceived value of a product. So, don’t assume that something unique about your offering will not be of interest to customers. People will sometimes even pay more for features that they didn’t know they wanted and will probably never use.
10. Make the Price Difference Insignificant
Having a slightly higher price than your competitors is unlikely to have a significant impact on demand. But, if you sell enough of a higher-priced product, it could significantly boost your profits. So, consider increasing your prices in small increments and monitoring the level of demand. There is likely to be a sweet spot at which you can charge your customers more than your competitors without impacting sales volumes.
The key to charging more for your product lies in product differentiation. If you can offer better customer service, a unique feature, or faster delivery, then you can justify a higher price. And, if your price is in the same ballpark as your competitors, most people won’t bother to shop around.