OnDemand WTP Pricing Research

What You Signal When You Move Price in the Wrong Direction | The Sales Blog

Price is a Shortcut

Pricing is a heuristic; it’s something that lets us learn something for ourselves. When you buy something that you believe is a bargain and it fails to deliver value, you have learned that lower price often means  you are making concessions when it comes to value. When you pay more, you learn that things of higher quality tend to cost more, and they also tend to outperform similar items that cost less.

Like much else we do in sales, we project our beliefs about what we sell, sometimes unknowingly. A lower price can make it easier for you to acquire clients who care deeply about price. Many of these same clients believe price and cost are the same thing. A higher price can make it easier for you to acquire clients who care deeply about value, and who recognize that paying more delivers that greater value.

Pricing isn’t easy. But moving prices down may not accomplish what you hope it does, and it may cause longer term damage to your overall strategy. Moving prices up is a show of confidence, that you are flexing your value creation muscles, proving that you are in the same category as what might have been a higher priced competitor.

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What You Signal When You Move Price in the Wrong Direction · The Sales Blog.

 

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