How do you know the price of these garden centre flower pots?
How do Customers Know the Price of Your Business Products or Services?
It might appear an obvious question when I ask it, but how do your prospects and customers know the price of your products?
Your answer will probably include answers like …. it is clearly marked on our website, details are given in our brochure, our products carry price labels .. or something similar.
That's fine if the customer can understand the website, brochure, price label .. but often , even though price is obvious to us, the customer has a problem understanding the price.
Websites are often confused with lots of options, brochures provide complex tables – think villa rental wites for example, there are options for time of year, number of bedrooms, number of people, well it is often confusing.
Even the flower pots above gave many people a problem. I stood next to them in the garden centre and asked several people if they could tell me what price they were. No one could. that waqs despite the price being on the small red label on the shelf edge. The problem is it was printed in faded black print on a red background and was illegible.
So here's an exercise for you. Before you leave this page list all the places your prices appear. Then go and ask someone to look at it and tell you what price the product or service is at each location. Test even the most obvious ones as like the flower pots above even the most obvious ones may be problematic to your customers.
When you write a note do you need a Montblanc pen?
When people hand write notes they can use a pencil, biro, roller tip, felt tip or fountain pen. Any of these will leave a mark on the paper and get your message over. So, in simple terms, to write a note we need a pencil or pen. But some people prefer a Montblanc.
Pens and pencils are quite inexpensive items. They also last quite a long time so no one is going to get rich selling a few pens. So how can you make much profit from pens and pencils .. or any other low cost product or service? I took a lesson from Montblanc when I visited their Lisbon shop.
How to make a profit selling pens.
The trick is to move from what people need, a simple pencil or pen, into selling something they want! You see no one needs an expensive pen when a low cost pen, maybe one they’ve been given, will do they job. But create the desire for something exclusive, expensive or hard to get and you can create a desire where prospects decide they need this and will pay almost anything for it.
Montblanc have perfected this changing need into want. Their biros and roller tips retail from around £210 with fountain pens retailing around £280.
Montblanc have taken this basic principle into other products; including leather belts at around £140 and that is before you look at their jewellery and other products.
How to learn about pricing from Montblanc
Montblanc can teach any business a lesson in marketing and pricing. Create a want rather than a need and you can start to charge the prices that Montblanc charge. Continue to fulfill needs and your price will need to compete with every other low cost supplier where customers are buying on price rather than quality, service, want or desire.
How can you create customer desire for your products or services?
If Montblanc can create desire for expensive pens when a freebie ball point will also do the job then it is highly likely that you can for your business service or products. It needs a bit of lateral thinking but is is definitely possible. In my own case I only take on a handful of private clients each year; I’m reassuringly expensive but clients report that their profits soar after a one to one session with The Marketing Magician. In the last few days I’ve taken on one extra client and have just one more place available; contact me if you’d like to learn how to market your business .. and we can work on making customers desire your products or services.
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