Believe it or not, customers are pretty good at correctly guessing the actual price of a commodity. That being said, what customers pay largely depends on how you convince them. Many profitable companies utilize this gap to create a foundation for profit. After all, commodity pricing is the major equation for any industry to succeed.
Being able to raise your commodity price and convincing your customers to pay for it without losing them to the competitor is an indication you have better price communication. What happens when customers start balking on your product pricing? Putting all fears and doubts aside, know that there are ways to convince your customers to pay more for your products.
A fundamental aspect of successful price increase starts long before the dreaded conversation with your customers. Make every communication you have with prospective customers emphasize the quality of the product you are offering as well as how the customer will directly benefit from the product. During price communication, avoid mentioning the price of materials. Instead, emphasize product features and how product offering has evolved to help them further. Premium pricing can actually have advantages for your sales. When you invest in quality products, your customers will be more than ready to pay that premium price you set.
Every aspect of conversation with your customers should stress on the value of your products. Customers tend to side where they can see visible results. If you increase the number of available products to exceed that of your competitors, customers are more likely to buy yours over others. Even though all value is subjective, try to persuade your customers by showing them how they will get more quantity if they agree to pay high.
Give Installment Plans
An installment plan is a valid payment option that many customers prefer when available. They find it appealing to acquire the desired product at a small price with the flexibility of completing the payment. You can use the installment plan to make your products appear even more affordable.
For many customers, paying installments of a particular amount of money in a specified duration is more agreeable than paying the full amount upfront. So, if you can, offer the installment option.
By taking into consideration the need to emphasize quality and value, and opening up your mind to the possibility of installment plans, you can feel confident in setting a price that you feel is worth your products and that your customers will pay for without hesitation.
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