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Pricing: Are You Confusing the Market?
If you truly believe that you're providing exceptional value...
...make sure that your price reflects that value.
Has this ever happened to you? You’ve just found a stain on your favorite dress; the one that has everyone using words like “drop-dead gorgeous” when describing how you look. Or, for men, it’s the power suit you wear whenever you’re getting ready to close a big sale. Either way, you’re at risk of losing the image that’s so vital to you.
As you’re bemoaning your loss, you hear an ad that claims that it’s stain remover:
- Removes stains that other stain removers can’t get out
- Is gentle on all fabrics, so much so that it doesn’t shorten the garment’s life
- Is green - it produces no toxic waste
You’ve heard all of this before and always been disappointed to find that the claims were unfounded. Still, if you don’t do something you’re not going to be able to wear the outfit again.
You do a little research and find that the claims made about this new stain remover have all been substantiated by independent testing labs with stellar reputations for fair and honest appraisal of the products it tests. Maybe there’s hope yet!
Off to the store you go, encouraged by the possibility of saving your favorite outfit. You find the stain remover on the shelf and, much to your surprise, find that it’s actually cheaper than the competing brands. Quickly, what are you thinking?
Does the Hallelujah chorus come to mind? Or are you wondering whether the product is as good as touted? Is this another example of advertising hype? But wait, the testing labs all supported the product’s claims! Hmm, I wonder if the testing labs aren’t as independent as I thought?
These are the kinds of doubts that we experience every time there is a disconnect between the marketing message we’re hearing and the price we’re seeing. In essence, when your price doesn’t support your marketing claims, you’re asking the buyer to choose which to believe - the marketing message or the price. When faced with this choice, which do you believe?
Typically we, as buyers, believe the price. Why? Because anyone can claim anything. We learn that at an early age and our skepticism grows as we grow older. That’s why we’re skeptical of advertising claims and more trusting of the price we’re seeing.
It's counter-intuitive, but when your price doesn't support your marketing claims you create confusion in the buyers' minds. Confusion leads to lost sales. If you want to increase your sales make sure that your price and marketing claims are congruent.
For more pricing tips visit http://www.pricingforprofitbook.com.
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