Don't be afraid of your prices: 3 basic points to use them to your advantage
Posted: Mon Dec 23, 2024 9:36 am
There are many issues that modern companies have to take into account, and many of them can generate fear and uncertainty: increasing competitiveness, new technologies, contextual changes, etc. However, I have noticed that in Latin America there is a very marked fear of one element present in the marketing mix: Price.
You only need to take a look at Facebook Marketplace to see this atypical behavior, as there are very few items with the price visible without having to start a private communication through Inbox. One would think that this occurrence is limited to Facebook, but it is transferable to other situations in the non-digital world, as in many companies you will have to ask or search thoroughly to find out the price of what they sell. The question is: why are they afraid to show their prices? And the answer is simple: because they do not understand them.
That is precisely why today I will leave you with 3 characteristics that you should know about the price in order to stop fearing it.
1. HIGH PRICE IS AN ADVANTAGE
Imagine that I met you on the street today, I greeted you all india phone number and told you that I have a great deal for you. I'm going to sell you a new iPhone, one of the newest on the market, for only half the price you would get it for in any official store. What would you think? You've probably found the luckiest offer in the world, but you'd also think that something is wrong.
Apple doesn't just have sky-high prices, it shouts them from the rooftops. Price sets the quality of the product in the mind of the consumer: "how could a cheaper phone be better quality?" It doesn't mean you have to jack up your prices to the max so everyone automatically thinks it's high-end, but you have to find a price that quickly places the potential customer in the right place for what to expect from your product.
2. NO PRICE IS AN ISLAND
Prices do not arrive one at a time to the consumer's mind, but rather work in blocks. We could list a large number of ways in which prices are grouped mentally, but here are the two most important:
By category: the customer will group and compare all the prices of similar products. That is, they will make a comparison between your products and those of the competition. This is where point #1 comes into play, as the comparison balances price with other product characteristics, including the perception of quality.
You only need to take a look at Facebook Marketplace to see this atypical behavior, as there are very few items with the price visible without having to start a private communication through Inbox. One would think that this occurrence is limited to Facebook, but it is transferable to other situations in the non-digital world, as in many companies you will have to ask or search thoroughly to find out the price of what they sell. The question is: why are they afraid to show their prices? And the answer is simple: because they do not understand them.
That is precisely why today I will leave you with 3 characteristics that you should know about the price in order to stop fearing it.
1. HIGH PRICE IS AN ADVANTAGE
Imagine that I met you on the street today, I greeted you all india phone number and told you that I have a great deal for you. I'm going to sell you a new iPhone, one of the newest on the market, for only half the price you would get it for in any official store. What would you think? You've probably found the luckiest offer in the world, but you'd also think that something is wrong.
Apple doesn't just have sky-high prices, it shouts them from the rooftops. Price sets the quality of the product in the mind of the consumer: "how could a cheaper phone be better quality?" It doesn't mean you have to jack up your prices to the max so everyone automatically thinks it's high-end, but you have to find a price that quickly places the potential customer in the right place for what to expect from your product.
2. NO PRICE IS AN ISLAND
Prices do not arrive one at a time to the consumer's mind, but rather work in blocks. We could list a large number of ways in which prices are grouped mentally, but here are the two most important:
By category: the customer will group and compare all the prices of similar products. That is, they will make a comparison between your products and those of the competition. This is where point #1 comes into play, as the comparison balances price with other product characteristics, including the perception of quality.