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Asset Sales - How to Get Money For Assets When You Need Funds
If you need to sell off assets in order to bring in funds, see what you have of value to someone else. There are options you can use when you are looking for a buyer. One option, though not recommended, is to pawn the item. If you can make an...
gomembers, Inc. Named to Software Magazine's 22nd Annual Software 500 for 8th consecutive year
gomembers (http://www.gomembers.com), one of the leading providers of association management software and membership, meetings and event planning software solutions, today announced its inclusion on the Software 500, Software Magazine's list of the...
The Soy Candle Business Opportunity is selling itself and making profits for its business owners
If you love candles, and spend money on them constantly, maybe you should consider getting a soy candle business of your own. These candles tend to sell themselves. More than 80% of homes in the United States burn candles on a regular basis, and...
Use Collaborative Approach - and Get Leveraged Earnings
By helping others to grow their business you ensure growth of your own business. I have seen this theory work even while dealing with competitors. This confirms one of the golden rules - you get what you give to others. I have been involved...
Why You Cannot Afford to Be An Anti-Social Internet Marketer
Anti-social internet marketing is a critical flaw that will destroy even the best, most creative sales strategies. If you do not build relationships and follow up on them --through personal interaction and automation -- you will spend most of...
 
Value-pricing Strategy: "We're not The Cheapest but..."

In this highly competitive online marketplace, it can be
difficult to persuade customers to buy from you when you offer a
similar product to your opposition but with a higher price tag.
And trying to beat competitors on price alone is a cut-throat
business, very risky and not recommended. It attracts bargain
hunters ready to defect to competitors for a better deal.

Using a value-pricing strategy is a better proposition because it
attracts loyal customers. Why do customers buy designer-labelled
clothes and luxury cars? Why are those items more expensive when
they don't cost so much more to make? The answer lies in the
perceived value. Value is not an inherent attribute of the
product but it commands a higher price.

Customers do not buy features and benefits, they buy VALUE.

Value is subjective. Value is a benefit but a benefit is not
necessarily of value to all customers. For example, a vendor
offers free installation and free updates for his software.
Customer-A considers "free installation" as "value"' because he
has no technical knowledge and this will save him time and
effort. Customer-B rates the free installation as "nice to have"
but the drawcard or "value" is the free updates that will save
him money in the long run. Customers do not assign value to the
same benefits.

Behind value-pricing strategies there are a few important
concepts:

- Customers are value conscious rather than price conscious e.g.
some customers will pay extra for prompt delivery.
- Customers assign a personal value to a product or service e.g.
a teenager is willing to pay a premium price for a concert
performed by his idol.
- The selling price is based on customers' perceived value rather
than on the vendor's costs e.g. an ebook costs less to produce
than a paperback but readers will pay more for it because of the
value placed on format and instant delivery.

When customers evaluate competing products, they are usually
comparing value. To increase the value of your products, you can
either add benefits or reduce the perceived risk factors


rather
than resorting to reducing your price.

Adding benefits

Value-added benefits do not replace comprehensive product
information but are complimentary strategies to help converting
website visitors into customers and giving you the competitive
edge. Try these value-pricing strategies:

- Special packaging e.g. recyclable containers, gift wrapping
with card
- Package deals (for convenience) e.g. bundles, "all inclusive"
value pack
- Fulfilment options e.g. "white glove" delivery service, instant
download
- Payment options e.g. monthly and yearly plans
- Free training material e.g. online manual, video, audio
- Personalised service e.g. "I oversee each account"
- Free product updates or refreshers (for courses)
- Bonus offers
- Certification e.g. licence, training certificate

Reducing perceived risks

For new customers, there is always an element of risk in
purchasing from a new vendor, especially over the internet. These
are examples of value-pricing strategies to boost confidence and
credibility:

- A professionally designed website
- Free trials or samples
- Extended warranty option
- Free after-sales service
- Your credentials, length of time in business, list of important
clients
- Guarantees of satisfaction "100% satisfaction guarantee"
- User-friendly privacy, security and refund policies
- Testimonials, endorsements, reviews
- Easy access with contact options e.g. toll free number, chat
live

Naturally, everyone loves value for money but does not
necessarily want the cheapest option. What value do customers
perceive in your product and how much are they willing to pay?
Value comes at a price!

Next time you consider reducing your selling price, think value.
"We're not the cheapest but...we offer value."

© 2005 Henriette Martel-Lawson

About the Author

Henriette Martel-Lawson is a website strategist, professional speaker and author of '200 Marketing Ideas for Your Website'. You will find more free articles, tools and resources from the author at http://www.marketingcues.com.

 

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