Did you know that it is rarely the price that determines whether or not a product or service will be purchased? Consumers buy based on feelings and emotions, not logic and reason. Let me illustrate this point with a story. I was shopping for new suits and found a Hugo Boss suit that had been marked down from $ 1,050 to $ 175. So of course I had to buy it, right? What happened is when I went to the Bay to pick it up, I decided to try it on again and when I did, it did not feel comfortable; the jacket was a little tight, the sleeves were a little long and the colour pattern was not exactly what I wanted. So despite the enormous discount on a premium brand, it wasn’t enough to make a sale.
In the radio sales business we sporadically make special offers to our clients when we have a surplus of inventory. The interesting phoenomen that takes place is that even if the commercials are offered at half price, if the client doesn’t have a need or want, they will not make the purchase.
As a matter of fact, according to Defaqto Research, 55% of consumers would pay more for a better customer experience. That’s why Starbucks is a successful organization; at almost $ 5 for a medium cappuccino, the price may be daunting for some. But most consumers enjoy the Starbucks experience which revolves around customer loyalty with an app to buy coffee and gather points, a staff that is very welcoming and a relaxed yet cool atmosphere. Other examples include Apple, Hugo Boss, Mercedes and so on.
So hold your price, provide an excellent experience and add value in order to gain customers.