Higher Prices Rule!!!

If your product is higher in price than your opposition then that’s a good thing!
Avoiding price till the end of a presentation is outdated in most cases.
Don’t shy away from higher prices, the way I handle it is to say;

“With advances in the __________business it makes good sense keep your knowledge of the latest developments and issues up to date to make sure you don’t miss anything.

As my product is about the most expensive on the market it is widely accepted as being the most complete package available and is definitely the leading product out there.

What we do is diagnose your needs and show you how our product can help you, if you can see the extra value then that’s great

At that stage you can either;

Decide to take us up on our proposal..
Decide to take a scaled down version of what we recommend.
Or, stay with the company your with and ask them to change a few things based on what you’ve picked up from our proposal.

In any case our time spent together will be of real value to you………”

All you have to do is show them the value in spending more.

Quote:

Originally Posted by Snowman

If your product is higher in price than your opposition then that’s a good thing!

Why is it a good thing?

I guess a higher price could easily imply a higher quality of product or service which is exactly what some people want. You may not get many results in the lower income group but could do very well in other income groups.

Michael Bloomburg is currently the fine Mayor of New York City.
Before he was Mayor, he built the Bloomburg empire (Information Services; there is now even a Bloomburg TV Channel of financial and other information).

Anyway, he was famous for saying that if something isn't selling well, RAISE the Price!!!! This increases the perceived value.

I agree whole-heartedly that while price is sometimes a limiting factor, one shouldn't go straight for price reduction, as it devalues what you're selling. Instead, find a less expensive solution to meet your buyer's needs. They'll respect this, and in the long run as they grow, so too will their relationship with you.

Quote:

Originally Posted by Seth

Why is it a good thing?

Higher prices are a good thing for the following reasons;

Higher quality, usually less problems with product or service
Potentially higher profit margin
Usually better after sales support
When things are tough in a market place buyers at the lower end of the scale tend to delay purchases
Buyers that can afford more expensive investments tend to;

Spend when things are tough so they can cheer themselves up
When things are good they spend even more to celebrate!!!

My clients buy because they want what I sell, not because they need it.
What makes them want it?
It depends if their business is good or bad, as to whether they are buying to cheer themselves up or to celebrate.

Funny, I once heard that Mac Tools, a mechanic’s tool manufacturer, increased their sales by raising their prices 30%. It seems that though their quality was on par as compared to their closest competitor, customers perceived the overly large price difference to indicate that they were inferior.

Interesting,
Bill

When a consumer knows little about a product price is frequently assumed as a measure of quality.

Significant for this board is the realization that as salespeople, we need to sell the value of our product to our prospects. The answer to "That's a little pricey" should usually be... "Well let's look at the value of XYZ...." OR, even better... you should have already had an opportunity to go over why your product or service has value to your prospect. So instead of "Well let's look at the value of XYZ..." you can ask what about the value do you not perceive to be worth that price, and draw out the root of his or her objection.

Price is quite often an easy mask for a deeper objection. Getting through to that deeper objection is how you get to the emotion behind the purchase.

It's amazing to me how this really works!!! I once had this exact scenario with a now customer. After objecting on price, and my digging deeper, it turns out his real "value" was that he wanted to prove something to a colleague. Once I got that far, I agreed to change the presentation of our service and he went from prospect to customer!

We sell two different complete lines of skin care products. One is very reasonably priced and the other is quite a bit higher. I haven't sold a single item yet from the lower priced line. I myself choose to purchase the higher priced and higher quality items.

Quote:

Originally Posted by Snowman

Higher prices are a good thing for the following reasons;

Higher quality, usually less problems with product or service
Potentially higher profit margin
Usually better after sales support
When things are tough in a market place buyers at the lower end of the scale tend to delay purchases
Buyers that can afford more expensive investments tend to;

Spend when things are tough so they can cheer themselves up
When things are good they spend even more to celebrate!!!

My clients buy because they want what I sell, not because they need it.
What makes them want it?
It depends if their business is good or bad, as to whether they are buying to cheer themselves up or to celebrate.

I think you have it backwards. If your product is of superior quality, better service is provided etc, then the value of your product will justify the price. I think the old saying "you get what you pay for" is appropriate. If your product is priced higher than the competition, then you need to show your customers the value and benefits they will get from buying your product instead of going with a competitor.

So, a high price does not justify the product/service, but rather, a good quality product/service will justify a higher price.

Higher Prices Rule!!!

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