We all want to think we can raise our prices or minimally not have to discount our prices.
Easiest way to do this is by narrowing your value proposition.
You might say the way to get more is by offering less. You read that correct — offer the customer less and you will get more.
Too many times we create value propositions we believe are perfect. We think this because the proposition offers so many different things that allows you to believe there is no way a customer won’t like it.
Problem is too many times the reason the customer doesn’t like it is because it does just that — offers too much.
Customers, whether they be business or consumer, want to buy the best value for their needs, but remember each customer’s needs are different. No matter what anyone says, no two customers are alike.
The way we maximize our price is by offering less. In this manner, we offer specifically only what the customer wants, but we do it in a way that has them willing to pay even more.
Let’s think about an example.
If you were to go to a store to buy a winter coat and you found one that said it would do everything including keep you warm and dry. Additionally, it offers not only lined pockets on the inside but also on the outside.
It doesn’t stop there. It comes with a removable inner liner to allow you to wear the coat when it’s not extremely cold outside. But wait, there’s still more! There’s a full hood too. You’re thinking good coat if that’s what you’re looking for. You’re also thinking you would pay $ X.xx for it.
You look at another coat and this one doesn’t have the inner liner, doesn’t have a hood, doesn’t have inside pockets that are lined. You’re already thinking this coat should be considerably less money. But wait, as they say on the commercial.
This coat has extra long sleeves to fit your long arms. Plus the coat comes in the specific color you’ve been looking for. Plus, you already own a coat with a hood and you have a new lightweight jacket you wear when it’s not super cold outside.
This second coat appears to offer less to the masses, but who cares — it offers more to you and you’re the one who counts. Because this is exactly what you’re looking for, you will buy it and, in fact, you’ll pay more for it because it’s exactly what you’re looking for.
Your price is not determined by what you offer. Your price is determined by what the customer values.
What does your value proposition offer?
How can you narrow it down?
What can you do to tailor your offering even more?
If you want more price, you need to offer fewer features. In the end, your customers are buying benefits and they will pay any amount for them.
Copyright 2015, Mark Hunter “The Sales Hunter.” Sales Motivation Blog. Mark Hunter is the author of High-Profit Selling: Win the Sale Without Compromising on Price.
