The hidden opportunity
There is a hidden secret in Price Points and how a customer responds to a price, even a ‘price objection’ in sales. The secret is – opportunity: the opportunity to reinvent your service or to move out of one market space and into a more exclusive territory.
Some sales executives fall apart when a customer says, “It’s too expensive” and they cut straight to the bottom-line and start hacking chunks off.
The truth is, this objection means one of two things:
1) They don’t value your product – the salesperson has probably missed several points in the sales qualification process (what the client really needs and how to match your product or service as a solution).
2) Perhaps you are too cheap? If you are struggling with price points and find yourself in a competitive price war, re-evaluate the product, give it a tweak, and raise the price. Lift yourself out of the war zone and into a better space! This is the ‘opportunity’.
Shoppers often associate brand by price. They automatically assume that the more expensive items are superior. So, if you have a product range that is struggling in a crowded market, lift it out. Make a small packaging adjustment, the ‘Collection’, the ‘Professional Range’, and up the price.
A simple modification to your service – home delivery for example – and you are now selling a ‘Personal Shopper Experience’. If you are selling media or exhibition space, create a ‘zone’ so that your customers feel like they are in the VIP area. It might mean little more than a page or carpet colour change but this is now something special – and costs a little more. They will want to belong to this space.
