Although cost isn’t the number one factor buyers consider when purchasing a product, it’s a high priority. For that reason, people often hesitate when purchasing a highly valuable product.
The high price point might be small potatoes to some of your customers, but buyers must feel like your products and services are worth the asking price. It takes finessed marketing to make your high-value items look like a great deal.
Here are some tips.
- Explain the High Value
With some products – like diamonds, a private jet, or solid gold jewelry – people already know they’re valuable, and the price tag reflects that. Other products need a little explanation. For example, a high-priced steak knife might raise a few eyebrows.
But if it’s Laguiole steak knives, like the ones sold by Occitan Imports, the price is naturally a little higher. Not everyone has heard of Laguiole, a region in France known for its knife-making traditions. Therefore, this company uses a portion of its products page to explain the value.
Your product might require a similar explanation. Consider if your product is clearly high-value or if it needs to be explained.
- Make the Problem to Be Solved Clear
Here’s a fundamental business rule: People pay to have their problems solved. Even the most frugal of customers will pay for a product if it can solve one of their biggest problems. It’s your job to determine how your product can solve customer problems and make that clear to the audience.
The goal here is to deliver the most value for their buck. Focus more on describing the best things that your customers can get out of your product rather than the best features of your product.
For example, consider this classic advertisement for Audi that aired during the 2009 Super Bowl. They used humor and luxury to deliver a simple message: Their new vehicle transcends old luxury with new. Their use of modern advertising and a clear focus on high value proposition made the price seem irrelevant when compared with the quality.
- Position Products to Close a Sale
The way you present a product, whether online or in-store, can influence purchasing decisions, and it can help you move your more expensive items. A common method of positioning your products is to showcase three similar products on the same web page or store display.
For example, if you show three different 40” televisions for $5,000, $4,000, and $3,000, you’re likely to sell the middle option. Buyers are likely to shy away from the least expensive for fear of low quality, and the high-priced item might seem exorbitant. This highlights the middle option, effectively allowing you to move a more expensive item in your shop.
You can also try:
- Dividing a large fee into daily, weekly, or monthly prices.
- Comparing the daily fee to something tangible like the price of a cup of coffee.
- Making a product look more valuable by shining a light on the best features and included extras.
- Using luxury images.
- Removing the dollar sign.
- Making the numbers physically smaller than the words.
- Comparing your prices to that of other companies.
Any of these tactics can make your expensive product look like a steal.
- Be Wary of Discounts
Although offering coupons, discounts, and low prices might interest budget shoppers, it’s often a turn-off for those with deeper pockets in search of luxury. Discounts can cheapen your product, especially if you do it to remain competitive.
There are other ways to stay competitive and hook your buyers. For example, you might offer a bundle deal so that they purchase more product and receive a well-earned discount. The same works for clients signing a long contract or signing up for a subscription service.
You could also offer upgrades and upsells either during or after the purchasing process. When you can offer more value through additional products and services, you remain competitive without cheapening your services.
- Reward Your Luxury Shoppers
Customers who spend more money in your shop deserve a reward, especially if they remain loyal. Buyers at a higher price point often seek companies that will value them, and they’ll offer loyalty in return.
There are many ways to reward an expensive purchase and loyal customers, including:
- Offering a free gift after making a purchase.
- Offering exclusive buying opportunities to returning customers.
- Asking customers for input on future products and services.
- Holding a preview evening where exclusive members can view your newly released products.
- Remembering birthdays and other special occasions with a small gift.
- Offering preferential services or products to loyal customers only.
Any of these rewards can further cement your customer relationships and make your more expensive products look even more valuable.