Are your customers willing to pay more for a product or service at your shop? Entrepreneur contributors Dan Kennedy and Jason Marrs think they are, if given sufficient motivation.
“[The] association between your product and the price you’ve assigned it most likely is not fixed in your consumers’ minds the way it might be in yours,” the pair wrote in a recent article. “Business owners can and should think creatively when it comes to pricing their products and experiment with various price points that are different from what they initially think they can charge.”
Kennedy and Marrs offered three suggestions to small business owners who would like to charge more for their products and services.
- Target more affluent customers. “Who is buying the product is an important factor when it comes to pricing a product,” they wrote. “Different people often buy the same product or service at different prices because of who they are, rather than what the product is.”
- Become a leader in your field. “A seller’s reputation, financial stability and leadership position in its market have been made more valuable as competitive assets than they were several years ago,” Kennedy and Marrs wrote. “As a business owner, your goal should be to make your company the go-to authority in your industry or area.”
- Upgrade your venue. “The price [a customer is willing to pay] is governed by the expectations of the consumer largely based on where they are buying it, the brand and the expertise of the salesperson-not the product,” they wrote.
To read the complete Entrepreneur article, click here.