Its all about value
Now at least half of you reading this just disagreed with that statement and you would be right to disagree, you see it would be more accurate to say that nobody buys on price alone, they buy on the perceived value of what they are getting for the money (price) they are spending.
Nobody expects to pay the same for a Rolls Royce as they do for a Dacia and yet they are both cars that get you from A to B, the way they do it is very similar as well they have an engine a steering wheel seats, doors etc. it is the way they make you feel that is the difference in value, hence the difference in price.
That is the key to competitive pricing, value, what is the value of what you are selling, how does it make your customer save money, make money, make them feel better, look better, become more attractive or give them peace of mind?
If fact you can boil all that down to, does your customer think that they are getting something that is equal to or worth more than the money they are spending to get it. If they don’t they will not buy it no matter how cheap you are. It is also true that they won’t buy it if they can not afford or raise the cash to pay you for it, but they would still think the price was fair if they see the value.
This is why a brand can have so much power, it is not the logo or the name that is important it is what that logo or name stands for, it is the implied value that is attached to the brand that makes it powerful. You can not build a brand that stands for nothing it will simply have no value.
As an example, from my own business the value in what I offer is the increase in profits that results from the work my clients and I do together, my clients invest an amount in my services each month that is returned in their profits by at least 3 times the level of that investment, every month, which is why they keep working with me, they see value in what we are achieving (the last 3 years data runs at an average of around 10:1). In fact the only reason I am not completely overwhelmed with enquires is that most don’t know this is the case and it is such a good return most don’t believe it will happen, which is why I have no problem with introducing potential new clients to my existing ones.
The point though is the amount I charge is largely irrelevant once a client understands and can see the value they are getting, and that is true for every product, eery service and every single one of you out there, when a potential client or customer can see that the value they are getting is qual to or greater than the price they are paying they will see that price as fair.
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