Some new companies are constantly in dilemma over what to base their products on. Some might think it is better to attach great value to a product that it stands out no matter the price while others believe that the price should be just right not to scare potential buyers away, since in the end they are set up to make profit. However, fixing a high price to your product might not necessarily attach value to your product, as a matter of fact people prefer to have product that works for them irrespective of the price. People are willing to pay more for your product if they think it will give them a significant value.
In the tobacco industry, there are some specially made cigars that go for $15,000 per box but people still buy it. These customers believe when they smoke Gurkha his majesty’s cigar they are inducted into an elite hall of fame, it is still the smoke other people will have but the value, they feel is different. People will do anything for a product that gives them so much value it is left for the company to make a product so quality that its value speaks volumes. No matter the price people will still find a way to enjoy your product.
Selling on value involves a whole lot of strategies and techniques to make it work; balance, confidence and personal rapport are some of the elements needed to make selling on value worthwhile for your company. Instead of deliberating on which side to choose, understand the following tips that will help your product stand out in a low-cost business world.
Identify your targets carefully. Tom Reilly who is an author and value-based shopping expert, explained the dichotomy of people in the market today. He states “About one-third of consumers are purely hung up on price, while the other two-thirds are open to at least hearing your argument”. Some customers are very sophisticated with the advancement of technology, they know how to explore price for value; product information can be easily accessed. Therefore it is important to know who your product is for and identify the niche where the product will thrive regardless of its price.
Be confident in the price you have fixed for your product. You do not have to be defensive, know what your product stands for and believe that the price is an apt representation of your product. However, the product should be of top notch quality to impress the potential buyer, there is no use attaching a price to an inferior product. People will force you to take it off the market. In essence, have a product that can prove its price. Also, make sure the product meets a particular need in the community or market. Identify a need in the market or in your group of prospects and design a product that will solve that aching problem. People would find ways to get your product once it solves their problems.
The battle for value over price or vice versa should not be the focus of business but how neat can your business cater for the needs of the people. How can my product alleviate the problems the people currently face? How can my product make life easier for the people? How can I improve the quality of my product to suit the needs of the people? These are more important questions that need to be answered before ascribing price, once you meet a need the people will attach the value you desire.