Do you use value pricing strategies? That is, do you try to figure out if your potential product delivers enough of benefit to justify its price? On the face if it, this makes sense, but it doesn’t always apply.
Sometimes when we’re considering a new product to put on our website we hesitate, because we think that it’s too expensive. This is a mistake.
Just because we think something is too expensive, or that it doesn’t provide enough bang for the buck does not mean that our customer will feel the same way.
For example, remember when 4K TVs came out? There were plenty of early adopters that jumped in and had to have one. Even though they were outrageously high priced, and the selection of programs available for them was small, someone was buying them. I thought that that was ridiculous – but for them it made perfect sense.
Who buys expensive toys?
Habitual early adopters of technology one of the first groups that springs to mind when we consider people who may have a — let’s be charitable here — somewhat skewed sense of value. Other customer groups are also willing to pay a lot of money for things that you and I may not attach much value to.
Collectors: everyone’s heard about the old copy of Action Comics #2 that brought hundreds of thousands of dollars at auction.
Hobbyists: the only difference between men and their boys is the price of their toys. If you managed to penetrate a product mix that is overrun with the busiest, good for you. Passion equals sales. Not only that, but these people will be the most likely to generate free content for your website via e-mails, ratings and comments.
I routinely sell a $650 machine to firearms enthusiasts. To them it’s just not that much money. A lot of them pay four or five times that much for a really nice gun. I myself own a pool cue that cost me over $450. My pool table cost $4500. And I get how that might sound crazy to a lot of you, but I’ve been shooting pool for over 35 years and I just love it. I love it enough to get the best equipment I can afford.
Professionals: Doctors, lawyers, executives – professional, busy people sometimes don’t bother to shop at all. I know I don’t. If I need something right away I go straight to Amazon.com. Find the nicest one I can afford and buy it on the spot. You would be surprised how many high income people feel the same way about almost everything.
Use pricing strategies to expand your product selection
So the next time you’re rummaging about deep in the bowels of Amazon and you come across something different, something unusual, something expensive-take a closer look before you pass on it.
What do the reviews for your product look like? Are they lengthy, informed reviews? Do the people buying this product really care, and do they mention related products as well? Maybe value pricing doesn’t apply. Value can be just like beauty – it’s all in the eye of the beholder.
You just might be onto something. Don’t let the fact that the price seems crazy lead you to judge what someone else might be willing to pay.