Getting a superior price for your product
One of the problems online is that people tend to use searches to find your product and that makes it a little more difficult to sell a product that has a higher value (and price) than the equivalent from your competitors. There are a number of ways to get around that though.
A very successful way for consumer products is to create a coolness about it. That’s worked many years for Apple products and those that produce the accessories for them too. The added price that you can pull in via this method can be very substantial: whereas a typical MP4 player was selling last year for around the $20 mark, Apple were selling a much less functional product for over five times that price. The difference? Simply that Apple created a “must-have” image for their iPod whereas the cheaper products just didn’t have the marketing budget for that.
Whilst that’ll work well for many consumer products and particularly those targeted at the young, it doesn’t work for all products so you need other approaches. Typically you can shift higher value products by repackaging the product as a lower value version with limited functionality but with the ability to upgrade the product. As you’re reading this, I’m sure you know very well how this works in computer sales outlets. There’s often a low ticket price but the salesman will say that you really need two or three times the memory to get a fast machine, that you really must have a Blu-Ray writer, and you definitely have to have extended warranty.
In the information age, there’s the possibility of using built-in obselesence. Perhaps the current best example of this is the new version of the TomTom satellite navigation unit. It’s priced quite low in comparison to their previous generation of products and comes with the maps for the area you buy it in. It looks like a great deal and it is but it doesn’t have the memory card slot that the previous version had therefore when you want to add more maps or even upgrade to the latest version, you need to buy a new unit. Naturally, the more expensive version doesn’t have this limitation.
So, think of using coolness, upgrades and limitations on the product to give your customer reasons to buy the higher end products that you have.
Copyright © 2008 by Arnold Stewart. All rights reserved.Popularity: 38% [?]
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Copyright © 2008-2010 by Arnold Stewart. All rights reserved.