Hallidays’ 7-step guide to pricing looks at how to price and position your products and services for maximum profit. This blog focuses on one of these steps – effectively communicating the value of your products and services.
Most customers don’t buy based on price; they buy based on value. A key step for maximising your profits is communicating the full value of your products and services.
Sometimes we are so close to our products or services that we don’t see their full value and communicate it effectively to our potential customers.
Here’s a taster of some of the comparison techniques you can incorporate to make your product or service look more valuable and attractive to potential clients:
- Cost of not buying it – the current pain
- Opportunity cost of not buying it – the result you won’t get
- Cost of comparable solutions
- Cost of everyday solutions
- Cost of doing it yourself – the value of your time
- Compare against your highest value product – Top Down Pricing
- Contrast with future price – a pre-launch offer
- Emotional cost – how good it will feel to have your product/service
When communicating value to your customers, it’s important to see your products or services from your customer’s perspective and focus on the benefits for them. Think of this beachball as a representation of your products of services.
If you held it up in front of a customer, you would both have different perspectives. It’s important to switch your perspective round to your customers’ perspective when communicating value. It’s too easy to fall into the trap of listing the features of your products and services, rather than focusing on their benefits.
For example, if you supply air conditioning, your customers probably aren’t interested in the detailed technical specifications of your equipment. They want to purchase the benefit – a comfortable environment for their team to work productively ensuring their business is more profitable.
Focus on communicating how your products and services deliver the full value that your customers are looking for to enable you to price for profit.
How Hallidays can help
Our business advisors offer half-day sessions to support you and your team to formulate a pricing strategy that maximises your profits.
To learn more please contact our team on 0161 476 8276 or email [email protected].