We all believe that “you get what you pay for”. We all believe that if a deal sounds too good to be true, it probably is. So when it comes to pricing your products, don’t think that lowering the price will generate more sales. This only works for Walmart because they offer the same products as other stores. But what if you’re selling a more unique product such as homemade dog houses, custom designed bracelets or personal trainer services? Then the price of your product can vary widely. When you price an item high, there is a perceived value in that product already. Here are some options for adjusting the price tag..
- Raise the price. But remember, your job is to not only raise your price but make sure that you provide the service that matches that higher price. The real money is in return customers so make sure that your price justifies the product being offered.
- Tiered pricing. Here’s a tip that’s worked wonders for me. Offer a product at a low price point. Then offer a product with additional features. Finally offer a product that would be the deluxe edition. This way you cater to those looking for a cheap price and those who care more for value.
- Have sales. Something else you can do as far as the pricing of products go is to always have sales. Distribute coupons or coupon codes. People always want to think they’re getting a deal. Offer discounts for larger purchases. Free shipping on larger orders. Everything should be tailored to provide the best deals to your best customers.