Friday 25th November, 2024
The Right Price?
In a recent networking session, one attendee asked for advice on the right price of their product. They were having several potential clients question the price of the product. There was the normal advice about price points and staying under “big” marks, like $50, $100 or $500. But what is right price, and is this really the issue?
Price (e.g., $xxxx) is no different to a product being red, green or yellow. Price is simply another description of the product or service.
Pricing Examples
For example, how would you describe a potato? It is a vegetable that can be mashed, boiled, roasted or fried. It can be white or red, unwashed or washed and makes a great chip and is $4.50 per Kg. Are any of the non-financial descriptions any more important than the cost? Or is the cost just another way of describing the item in question.
What about a less day to day item – a car purchase? Is it petrol, diesel, hybrid or electric? Standard colour or custom colour, with or without Apple Play? Leather or cloth seats? Which trim? $45,000, $48,000 or $50,000? Again, your choice could be swayed by any of the options, including price. But would any of these options rule in or out the decision more than another?
Okay, but does the same apply to a service? For example, a massage. Types of massage could include, Swedish, Chinese or Brazilian, half hour or full hour. Alternatively, be for a specific area of the body or cost $50, $75 or $100. Again, all these options could assist you in deciding. Hopefully you agree that the same does apply for a service.
The Right Price Conclusions
So, the next time a potential client questions the price of your product or service, what should your first thought be? If your used car was red, would you offer to change the colour. If you offered Swedish massages would you try learning, Chinese prior to the session? No, so why lower the price?
The client is NOT questioning the price of your item. They are questioning their perceived VALUE of what you are selling. Warren Buffett said, “Price is what you pay. Value is what you get.” In the sales process it is far more important to focus on the value and benefits. If the value and benefits are perceived as enough to your potential client, then the price is just another description. Just like colour.
If you would like any assistance finding the “right price” for your product or service, why not reach out for a no obligation chat at info@fbsconsulting.com.au or phone 0468 794 040.Also, if you enjoyed this blog there is more to be found at our Latest Blog Pages.
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Hope you are having a great week. Drew