1. Almost nobody buys solely on price. If they did people would only drive a Kia and shop at Walmart.
2. People will pay what you ask them to pay, as long as you can prove that the value of the thing you are selling is just a small sliver of the actual value of the thing.
3. Setting your prices based on what your competition is doing is lazy, mindless, and part of the herd mentality that you have been trying to get away from. Most of the time the “traditional” prices set in your market are nothing but a random happen stance.
4. Competing on price lowers your margins. Lower margins allows you to do less to bring in a customer and less money to wow and keep a customer. Charging 50% more allows you to do more to create customer loyalty and appreciation.
5. Competing by price will drive you and everyone else in the market out of business. Everyone is slowly chipping away at price and are basically circling the drain of commerce. This is bad because the consumer is slowly getting more inferior product and service, and business owners are miserable.
6. By raising your prices, you are seen as an expert, authority, and high quality business in your field. This gives you extra credibility, stability and trust. People trust more expensive providers.
7. Being one of the highest priced options in your market protects you from your competition who are too afraid to do the same, allowing you the budget to now advertise in places they can’t afford to be… also allowing you to (as a deliberate strategy) TRY to spend more to get a customer than anyone else will. At this point, you own the market by offering back end products and even lowering the price on that initial product because nobody can afford to compete with you.
8. Being a high priced provider actually gives your customers more satisfaction. Contrary to popular belief, we love buying things. Have you met us westerners? We love to buy shit. And the bigger the purchase, the bigger the endorphins and rush we get. People love to buy expensive stuff.
9. The more expensive your product or service is, the more trust the consumer will have in the product or service getting them the result they bought it for. We all equate price with value.. Especially when we don’t know anything about the subject matter on which we are buying.
10. Making your customer pay very high prices for your products and services will actually make them more commuted to themselves.. more of their ass is on the line, and the more leverage they have to get the result.
11. Typically (and I’m generalizing here) people who only want to pay the lowest prices are generally a pain in the ass.
12. You have to make less sales to reach your goals.
It is in the best interest of you, your customers, the economy, your family, and this earth, to stop competing on price like some commodity driven parasite, and actually begin to value yourself and your customers more.
So how do you raise them? Getting out of the price trap is kind of like getting off of hard drugs. You can wean yourself off or go cold turkey. You can also go to rehab (this blog is your rehab haha).
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