You’ve done it. You buy a can of Coke® from a vending machine for a buck. Order that same Coke in a restaurant and it comes in a glass, with ice, and a straw, and it’s $3.75. Are the glass and the ice and the straw really worth $2.75? Apparently. People do it all the time, and never whine about the price.
Here’s a list of ten ways you can bring more value to your offering. Find three that you can apply right now.
People will pay more for quality. The Maytag repairman isn’t just lonely. He’s old and lonely. Show your prospect that the lifetime value of your offering is far superior to your competitors’.
People will pay more for superior service. Why do you think people pay twice as much for a suit at Nordstrom’s then they would at Men’s Wearhouse? They value the service – expert tailoring, multiple fittings, free monogramming – and all this makes up for the additional money they will spend.
Authenticity means the real deal – the genuine article. At the Louvre Museum in Paris, you can gaze upon what is perhaps the most famous work of art in the world: Leonardo Da Vinci’s portrait of Lisa Gherardini del Giocondo, commonly known as the Mona Lisa.
For all the hype, it was quite a disappointment. The painting hangs alone in a large hall in dim light, cloistered behind thick plates of bullet-proof Lexan. And it’s small; only 21 x 39 inches. Mrs. Gherardini has not aged well over the past 500 years. The paint is cracked and the colors are smoky and faded.
However, scientists have analyzed the pigments and digitally recreated this masterpiece just as it would have looked standing wet on Da Vinci’s easel in 1506. The reproduction is ascetically superior in every way, and you can buy the poster-sized print in the museum gift shop for only twenty Euros, while the original, of course, is considered priceless.
Company stability means a company that’s been in business since the landing at Plymouth Rock. Do you tell the story about how your Grandfather came from the Olde Country and started the business with his brother and cousin in the back of their barn? You share that history because people put a high value on stability and longevity in business. No one wants to be a beta test.
People are busy and when they find a vendor they can count on, they buy from them again and again. How do you demonstrate to your customer that you’re reliable? Does someone answer the phone on a second ring? Do you show up for appointments exactly on time? Everything you do (or don’t do) sends a message about your reliability.
6. Social or Ecological Values
Do you recycle? Do you use recycled paper in all your packaging and correspondence? Are you running alternative fuels in your fleet? These issues have become more and more important in recent years. Seventy-eight percent of consumers said they would pay $2,000 more for a car that gets 35 miles per gallon, even though that only makes economic sense if gasoline is in the range of $4.00 a gallon (that’s more than I pay for wine!). Meanwhile, the Prius was voted Number One Most Ecologically Sensitive Product of the last decade.
People routinely pay hundreds, even thousands of dollars for a nick-knack at a silent auction raising money for a scout troop, church group, or political cause. At this year’s Cigar PEG celebrity auction, the three-day elite speaker coaching package I donated raised $22,500.00 for the National Speakers Association Foundation.
This is why you pay fifteen dollars for FedEx instead of 52 cents for first-class mail. People want the product in their hands immediately. Whether it’s delivering a customized pen in less than the time promised, or completing their project a week ahead of schedule, people don’t just want what they paid for when it’s expected, but BEFORE it’s due.
Even Time Magazine, offers “Three easy payments of $9.95.” So, when you have a good customer who’s shopping for terms, you can say, “Well, we can give you 2% net 30, or 90-days net. Take your pick.” This also proves to the customer that you value them enough to be flexible on terms.
9. Local Sourcing
Eighty-two percent of people surveyed have consciously supported local or neighborhood businesses. People like to be a part of a community, and will pay higher prices to support local vendors. Need proof? Compare prices at your local farmer’s market with those at a big-box store.
There’s a two-pump garage and gas station in the tiny Colorado mountain town where we live called Carl’s Corner. I’ve been buying gas from Carl for more than 20 years, and my wife is always giving me a hard time about it. She says, “Why buy gas at Carl’s when we can get it cheaper at the Conoco in Boulder?”
“Because we need more than just gas,” I remind her. “We need Carl. We need him when we have a flat. We need him when we have a dead battery. We need him when we slide off the snowy road and get stuck in a drift. We even need him when we run out of gas for the grill. And if we don’t keep his garage open, then we won’t have a mechanic in the canyon at all.”
Regardless of what someone is buying, or how much they pay, they want to have FUN and feel good about their purchase. How can you add a fun factor so your buyers enjoy the experience and keep coming back?
You’ve seen this guerrilla tactic in action if you’ve ever bought fish at Seattle’s Pike Street Market.
What can you use from this list to justify your higher price? Many of these are things that you’re ALREADY doing, but not taking the proper credit. Make certain that you explain ALL the aspects of your product or service that makes you more valuable to your customer. Focus on your uniqueness and what you bring to the table that your competitors are ignoring.
This is only part of a list of 31 Reasons Customers Will Pay More. Watch the new seven-part video, “Guerrilla Tactics to Sell at Higher Prices,” at: http://vimeo.com/user6769112/videos