Friday, April 13, 2012

Be Proud of Your Pricing

How much?


Well... before I tell you that, let me tell you all that you get.

We've all had that moment.  The customer wants to get to the bottom line before you've had a chance to talk up the product.  You hesitate because you are afraid the customer will balk at the price.  You know it is higher than the competitors, but with good reasons.  You think, if only you could get those reasons out first...

But if you think that way, you are thinking wrong.  

Roy H. Williams taught this to me first.  Jeff Sexton wrote a great blog using Roy's explanation.  Here is my take.

If someone asks you the price, be proud of your price.  Take a deep breath and answer with... the price.  Yes, tell them price right up front.  The first word out of your mouth should be a number.

Then immediately tell them all they will get for that price.

How much?

$259.99 and that includes the the cup holders and the security bar so that you have options for your older child to be able to climb in and out on her own.  It also includes these self-leveling wheels that are rubber so that it will be quieter while you walk, allowing your baby to sleep better and you not to be so annoyed at the clacking racket the plastic wheels make.  It also has this simple one-hand folding technique so that if you have a toddler in one arm you can still fold it and slide it into the trunk with your other arm.  It also includes...

Do you see how the price appears to go down the more benefits you list after saying the price?  When you start with the price and then list the benefits (all the stuff following the words "so that"), the customer thinks wow, what a bargain.  Reverse the order - tell the benefits first - and with every benefit you list the customer expects the price to go up.

Same price, same benefits, different perceptions.  Say the price first, then make it go down perceptually by listing all the benefits immediately after.  Plus, when you say the price first, you are showing that you have pride in the price, which instills confidence in your customer.  And that is always a good thing.

-Phil Wrzesinski
www.PhilsForum.com

PS  For more on how perception affects pricing, check out my eBook Pricing for Profit (free download).

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