Are you sitting there wondering why whatever you’re selling isn’t flying off the shelf (real or digital)?
It’s a common problem.
Often, the first solution you think of is “Let’s have a sale!” or “it must be priced too high”.
I’m here to tell you that you’re flat out WRONG.
While huge discount retailers exist and people flock to them for their low prices, chances are that’s NOT what drew your customers to you. If that were true, Nordstroms, Nieman Marcus, Cartier and Tiffany’s would all be out of business from the Targets, Walmarts, and K Jewelers of the world.
What do those higher priced retailers know that you don’t?
Higher prices indicate to the buyer a higher value.
When you are stuck between two seemingly identical options but one is quite a bit pricier, chances are you’ll assume that it’s superior. We have to make a decision somehow so we use price as an indicator for quality. While it may not always work in our favor, we all participate in risk aversion. We’d rather risk paying too much than dealing with the hassle of paying too little.
That’s not always true and you should fully examine your position in the marketplace and evaluate your offerings before you jump to any conclusions.
Now-if you have a low quality product, a low price is the right price. The last thing you want to do is have a high price that doesn’t match the quality. If you buy a cell phone charger for $120 it better do EXACTLY what it says and work FLAWLESSLY. But if you buy one for .99 and it stops working after a week, you figure you got what you paid for.
You want to make sure that YOUR customer feels like they got MORE than they paid for.
I have to tell you, 9 times out of 10 when I see someone lower their price to get sales, not only does it have the OPPOSITE effect, I know that their original prices was already too low. We are so good at selling ourselves short that when we can’t see people valuing what we’re offering, we devalue ourselves further.
We have to value ourselves and our offerings before anyone else will.
Does your pricing reflect the VALUE you offer your buyers? If not, maybe it’s time to raise your price and see how that works.
Of course, raising your price isn’t a cure for everything. Maybe the product or offering just isn’t quite right. Maybe you’re attracting the wrong buyers. Maybe the copy on your sales page just isn’t hitting the right chord.
Before you drop your prices, take a look around. Are you priced higher or lower than similar products/offerings? Lower? Maybe it’s time to try raising them.
After all, what’s the worst that can happen? You’re already short on sales.
Try it. See how it goes.
Report back. I want to know: did raising your prices work for you?
P.S- Need help evaluating your business and uncovering the hidden pitfalls holding you back? Let’s talk!