Master the Art of Creating Premium Prices

Master the Art of Creating Premium Prices

If your marketing strategy includes deals, discounts and mark-downs, consider the repercussions to your brand. Do you seek to be the discount store, complete with hundreds of one-time shoppers? Or, would you rather host a handful of top-paying returning customers?
 

Top performing businesses know the value of providing at least one premium product line. To create a sense of exclusivity, affluent-savvy businesses offer high-end customers with priceless offerings, as Nielsen explains. Acquiring these high-prized consumers takes risks that produce big rewards. Earning business through premium pricing paves the way to high product demand, loyalty and prominence.

 

Premium Confidence

Believe in yourself and others will too. The same holds true for your products and services. You know you have a winning product. Your services go above and beyond the competition. Your attitude needs to convey certainty.
 

Start by identifying your premium price. Quote Wizard recommends understanding your true acquisition costs to determine a premium pricing policy. Determine the costs involved with sales, marketing, and research. Then divide that by the number of customers gained from your sales strategy. Next, identify the added value of your products based on the benefits rather than the features of your product or service.
 

Once you’ve established a fair premium price, stand by it with pride. Don’t waiver. Rather, explain your value to the customer and prove the advantages offered by your products.

 

Unique Selling Proposition

Think about what sets your business apart from the competition. What are the qualities that make your premium offer a hot commodity?
 

Present customers with a unique selling proposition (USP) they can’t resist.
 

Consider renowned businesses that withstood the test of time. For example, Bounty Paper Towels prove a viable USP that loyal customers have grown to trust. “The quicker picker upper” sells at an average retail price of $5.14. Low-end paper towels retail around $2.14, per Consumer Reports.
 

Why do hundreds of consumers opt to pay more than double for this counter top staple? The brand stands by its USP and continues to prove its worth beats the lower priced competition. Follow these tips for a winning USP:

 

  • Identify your customers utmost desires from your industry
  • Examine the features of your product or service and describe them in terms of consumer benefits
  • Outline how your services meet these needs and desires

 

Experience and Expectations

You know your product or service is the best in town. You can spend all day telling customers why your product is great and still get nowhere. Savvy consumers already know value trumps price.
 

In fact, A Nielsen Global Online Survey reveals that 61 percent of consumers rated “good value” as the most influential reason to shop at a particular retailer. Customers need proof your product/service brings value to them. The “what’s in it for me” factor is what makes your product the only worthy option.
 

How do consumers perceive value? It’s all in the experience.
 

Consider luxury retail giant Nordstrom. Known for their excellence in customer service, consumers don’t think twice about paying top-dollar for products. Providing easy returns, quality products and friendly service keeps Nordstrom customers coming back.

Leave A Reply