Hmmmm. That's an interesting pair of shoes. Nice colour too! "May I try these on in my size?" Felt sooooft and comfy too. And offered at a double digit price? "Where are they made?" "Paris! the sales assistant said confidently.
Hello???? That price considering the labor costs in the EU? If you had said made in Malaysia for export to the EU that would sound plausible. But made in Paris? At that price? Ummmm.
One of the most popular modules in my 'Branding' workshop is on Pricing Strategies as there are many aspects to consider before setting a price. Some offerings look to be of high value until they are examined more closely and vice versa too. Like it or not, a price tag sends a message in itself - even if it is an offer for a free service. Actually, if you realy, really want to capture customers who will bring you repeat business, offer a money-back guarantee and see how that goes down :).
But back to price tags. Customers do want good things cheap, but don't really expect that. So if something is cheap, the canny buyer will wonder if the sale is legitimate or whether the products are genuine, or even whether the seller is going to disappear without a trace; or if there is some other hidden agenda. They believe you when you have been at the same location or industry for a long time, or are known to someone whom they trust. That's Brand Credibility and is also where money-back guarantees play a part. (Personal branding also has an impact on closing a deal).
Perhaps you're wondering how YOU might build a money-back guarantee into your offer? Let's talk about yourproduct or service and work our what your customers will appreciate - you might even find that you are under-charging! I'd be glad to offer some insights - just call me at 6-03-21697704.
BRING ME THE BRAND, I'LL INCREASE ITS PROFITS!
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