Tuesday 26 February 2013

Strategizing between Price and Convenience to Get More Customers




Understanding the direct connection between pricing and convenience is an essential area of your business, it’s the thin line between getting more customers and not getting any at all. How much you price your product or service will give a certain impression to your target market. A product that is over-priced may immediately turn-off customers without even trying it, but don’t think that totally lowering the price will make people try it —an overly low priced item will sometimes make customers doubt its quality.
                                                                                                      
Have you ever had that experience when you’re shopping for something and can’t seem to decide between two almost similar products? While you want to get your money’s worth by getting something affordable, you don’t want to get a low quality or faulty product just to save money. A well-strategized and marketed product must show consumers a clear relation between its price, its convenience, and quality. This is why there are certain products in the market that sell more than its cheaper counterpart—simply because consumers understand why it is priced that way. Customers are willing to pay for premium-priced merchandise, as long as they see the actual quality of what they are paying for. If you plan on getting more customers to enjoy your product or service, selling it cheap just won’t cut it.

There are some essential considerations when deciding how to package your product, how much to sell it, and the major benefits to highlight to consumers. Getting more customers to take notice of your product and services takes a whole lot of strategy and planning. Here are a few quick tips:

  • ·         You need to get a good understanding of what your target market needs and wants. Bottom line is, if you’re selling something that really doesn’t present a clear solution to a pressing need then no one will buy it. Knowing what your consumers want is also critical; why would you sell a bunch of cooking products to high school kids? Know what they want.
  • ·         In deciding on a product’s price, make sure you consider the cost of production; obviously, you can’t price something lower than what it cost your business to produce. Make a research of your competitors in the industry and find out their price range.
  • ·         Highlight the product’s uniqueness and the convenience it offers. By strategically communicating these to your target demographic, you will be able to justify the price range you have set. Again, getting more customers is not all about going cheap. You just need to help your customers understand its price based on the benefits they will get and the quality you offer.   
  • ·         Set a balance. Just because you offer some unique benefits, it doesn’t mean you can charge them double than industry standards. Customers are looking for convenience and affordability. They may be willing to pay a few dollars more for something that seems better, but may feel ripped off if you charge too much. In getting more customers, make sure to set a balance between pricing, and convenience and quality.

Photo Credits: Flickr Creative Commons

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