The price you set for your offering usually plays a big role in whether your target audience sees it in a negative or positive light.
As a marketing geek I pay attention to prices and how they affect the customer’s perception of products, services and the companies that offer them–the perceived value. That’s why I loved this newsletter from my realtor (and friend) in northern Idaho, Kathy Robinson.
Kathy tells us that even in this seller’s market, it is important to set a price for property that is competitive. If the price outweighs the value then the seller can be perceived as greedy, gouging, or just plain rude. The negative impact of that initial impression lasts. It rarely goes away, even if the price is reduced.
Most of us know this, yet few people really pay attention to pricing. To do it well we need to:
- Put ourselves in the shoes of our current customers
- Put ourselves in the shoes of our future customers
- Put ourselves in the shoes of our competition
Putting ourselves in the shoes of our customers means understanding how they
- Perceive the price of, and value, our products or services, or both
- Make their purchase decisions, and take their purchasing actions
- Use, and re-use the products or services, or both
- Refer our company, products or services to others
Of course, many other factors play into a purchase decision, like service, ease, relationship, and more. Kathy is good at those things too, which is why I like working with her and have read her newsletter for years. (If you have 3 minutes more for some great insights, I encourage you to read her newsletter – and admire her artwork at the top.)
However, we can sometimes gloss over, or get too emotionally attached to, the money attached to our offerings. It pays to take a step back.
How does price fit into your offerings and customer relationships? How do you gauge this?
Please by commenting below!
Have a successful rest of the week.