Have you ever wondered why some companies thrive while charging a premium, while others struggle to make ends meet, offering rock-bottom prices? In business, there’s an intricate relationship between pricing and perception. And the art of impactful communication will help you achieve the delicate balance between price and value.
July 31, 2023
Have you ever wondered why some companies thrive while charging a premium, while others struggle to make ends meet, offering rock-bottom prices?
In business, there’s an intricate relationship between pricing and perception. And the art of impactful communication will help you achieve the delicate balance between price and value.
Picture this: you stumble upon a brand that exudes excellence in every aspect of its product or service. From top-notch quality to exceptional customer service, they have it all covered. You find yourself mesmerized by their offerings, and in your mind, a clear association forms - quality equals value, and value justifies a higher price. At this moment, being the cheapest is far from your mind.
Conversely, when a business competes solely on price, doubts emerge in your mind. Can something that's incredibly cheap truly be of the highest quality? Doubt clouds judgment, and you start questioning the true worth of what's being offered. There’s less chances that you will think of this business as a market leader. So, in short, being the cheapest is not a smart move.
Pause for a moment and reflect on your pricing strategy. Are you chasing the lowest price point, fearing you might lose customers otherwise? It's time to rethink your approach. Instead of being the cheapest, focus on showcasing the unique value you provide. Embrace your strengths and let it shine through. Doing this will attract customers irrespective of your price.
Here's a surprising truth: more often than not, it's the sellers who struggle with pricing. Fear of rejection, doubt in the product's worth, or uncertainty in their own abilities create barriers. Buyers are looking for solutions to their problems and are willing to pay a fair price for it. Own your expertise and worth, and let your pricing reflect that. The key lies in how confidently and convincingly you communicate the value you offer.
People don't want something until they know they can't have it or other people want it as well. When something appears limited or exclusive, its desirability skyrockets. Think about the excitement surrounding limited-edition products or exclusive memberships.
Showing that you're available to everyone is killing your leverage. It dilutes the perception of your value. Create a sense of exclusivity and use scarcity to build your value. Offer limited-time promotions or exclusive deals to a select group of your customers. Watch how their eagerness to engage with your brand intensifies.
Communication is at the heart of every successful pricing strategy. Be confident. Emphasize the value you provide without diminishing your uniqueness. Engage your customers in conversations, and let them be part of the story you're creating.
Sometimes, you trigger objections by what you say and how you say it. It can be disheartening. But it also presents an opportunity to refine your message. The way you communicate and present your pricing can either ease objections or inadvertently trigger them. Be mindful to inspire curiosity and understanding rather than defensiveness.
Start by knowing your audience inside out. Understand their pain points, desires, and motivations. And tailor your messaging specifically addressing them. Paint a picture of how what you offer can transform their lives or businesses. Speak to their emotions and aspirations, making them envision a brighter future with your product/service.
Ensure not to alienate potential customers by using jargon. Instead, speak their own language. Aim for clear and relatable language that resonates with your audience.
Finally, listen actively to your customers and engage in two-way conversations. Address their objections with empathy and transparency. Turn objections into opportunities to showcase your expertise. By genuinely valuing your customers' input, you foster trust and loyalty, positioning your brand as a reliable partner rather than just a seller. When you become a reliable partner, you attract the price you deserve.
In the play of pricing and perception, remember, that being the best is not just about quality products or services. It’s about conveying that excellence effectively. Embrace your worth and communicate your value with passion and authenticity. Dare to be the best, and you'll see how your pricing can transform your business for the better.
About the Author
Joe has collaborated with founders and leaders of both SMEs and Multinational corporations like USAID, Adrian, Shelter Afrique, Barclays, SHONA, Blu Flamingo, Arielle for Africa etc. Joe is an Alumnus of the University of Nairobi where he pursued a Bachelor of Arts in Design. He’s spent more than 9 years working in Branding, Marketing and Advertising and has cultivated an in-depth understanding of how brands work. He has the ability to co-create impactful brands by developing strategies for brand impact, quality control, consistency and innovation.