People Will Pay More if ...

by Joel
10 replies
People Will Pay More if .....

▫ You have demonstrated superior value

▫ You have demonstrated superior quality

▫ You have demonstrated superior ROI

▫ You have a 'premiere' brand

What can you do do to increase your sales proposition in 1, 2, 3 or 4 of the above ares?

Joel
#pay #people
  • Profile picture of the author Ron Lafuddy
    Joel,

    Here's the secret.

    People will pay more when they really WANT what you are offering.

    #1 is always Want.

    Superior value, superior quality, superior ROI, ‘premiere’ brand
    are only used to justify what they want.

    None of those things matter until want has been determined.
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    • Profile picture of the author DABK
      Except he named his thread "People will pay more if you..."

      He's in the 'after want has been determined phase.'

      So, assuming want has been determined, how do you make them want to pay more? Or, want from you, not from the gal down the street?

      Then, his points are valid but a bit vague, except ROI, and even there there's room for vagueness, though I assume he's talking dollars... But not every business person defines ROI in terms of dollars all the time. I've given this example from my past: one of my SEO clients considered he was getting good ROI if he was outranking the guy who trained him.

      So, let's assume everyone figures out on his/her own what value, quality, etc., mean to their particular client and let's get going with how you demonstrate any or all of the 4 ways.

      In the mortgage business, one way you demonstrate value to borrowers with not much education is by getting yourself recommended by their real estate agent, attorney, accountant. Whereas, you demonstrate it to highly educated borrowers by giving them information whose veracity checks out.

      If it's a mortgage broker/loan officer you need to demonstrate value, one way of doing it is to get him / her an extra client for the same money he's / she's spending now.



      Originally Posted by Ron Lafuddy View Post

      Joel,

      Here's the secret.

      People will pay more when they really WANT what you are offering.

      #1 is always Want.

      Superior value, superior quality, superior ROI, 'premiere' brand
      are only used to justify what they want.

      None of those things matter until want has been determined.
      {{ DiscussionBoard.errors[9167044].message }}
      • Profile picture of the author Claude Whitacre
        People will pay more (and won't shop around) if;

        They feel your solution is specific to them.
        They feel like they are dealing with an expert or celebrity.
        The believe that what you have is in very limited supply.
        They believe that there is a long line of people wanting to buy what you sell.
        They believe that by buying from you, they will keep a competitor from having what you sell.


        And now you know.
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        • Profile picture of the author AndrewCavanagh
          Originally Posted by Claude Whitacre View Post

          People will pay more (and won't shop around) if;

          They feel your solution is specific to them.
          They feel like they are dealing with an expert or celebrity.
          The believe that what you have is in very limited supply.
          They believe that there is a long line of people wanting to buy what you sell.
          They believe that by buying from you, they will keep a competitor from having what you sell.
          Cool Claude.

          And if they trust you.

          Getting paid well has a whole lot more to do with the kind of
          relationship you build than anything else.

          If you establish the right kind of relationship early on (for example
          by being referred to them by someone they trust or them finding
          you through something that builds your credibility) then you're
          already on the track to getting paid higher fees.

          Add to that you taking the time to actually get to know them and their
          business (this builds trust) and providing solutions customized to what's important
          to them then you're going to massively increase the fees you can
          charge.

          Kindest regards,
          Andrew Cavanagh
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        • Profile picture of the author Rus Sells
          Ding ding ding! We have a winner! Johnny, what's his prize?

          Originally Posted by Claude Whitacre View Post

          People will pay more (and won't shop around) if;

          They feel your solution is specific to them.
          They feel like they are dealing with an expert or celebrity.
          The believe that what you have is in very limited supply.
          They believe that there is a long line of people wanting to buy what you sell.
          They believe that by buying from you, they will keep a competitor from having what you sell.


          And now you know.
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        • Profile picture of the author DianaHeuser
          Originally Posted by Claude Whitacre View Post

          People will pay more (and won't shop around) if;

          They feel your solution is specific to them.
          They feel like they are dealing with an expert or celebrity.
          The believe that what you have is in very limited supply.
          They believe that there is a long line of people wanting to buy what you sell.
          They believe that by buying from you, they will keep a competitor from having what you sell.
          And now you know.
          Thank you. That sums it up perfectly for me Claude
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  • Profile picture of the author Aaron Doud
    Originally Posted by Joel View Post

    People Will Pay More if .....

    ▫ You have demonstrated superior value
    Superior to what? In my mind Superior means you are comparing and comparing unless the customer brings it up is the best way to get them to pay less. You want to show value in so much as what you offer will give them benefits they want.

    Originally Posted by Joel View Post

    ▫ You have demonstrated superior quality
    Honestly the average customers cares little for quality. Let's use a B2C example.

    Apple Products are on average build better. But that is not why people buy them. In fact Apple's sales cycle is designed to get people to upgrade long before their products wear out.

    So what do they focus on?
    The value in being cool.
    The value in a product that just works (no tech geek needed)
    etc etc

    Originally Posted by Joel View Post

    ▫ You have demonstrated superior ROI
    Here is something very few people will tell you. The average business owner does not even know (truly know) what ROI is.

    I'm not saying you can't use ROI as part of your pitch. You will be talking about something that others are not and that is always an advantage. Especially when you show them how it benefits them.

    But they don't care about ROI. Normally they want customers. And while they don;'t want to over spent to get them most are focused on their advertising "budget".

    They see advertising as a cost vs. an investment.

    Originally Posted by Joel View Post

    ▫ You have a 'premiere' brand
    I agree people will buy for brand. And you can create a brand around yourself even if they have never heard of you or your company before.
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  • Profile picture of the author misterme
    This:

    Originally Posted by Claude Whitacre View Post

    They feel your solution is specific to them.
    They feel like they are dealing with an expert or celebrity.
    The believe that what you have is in very limited supply.
    They believe that there is a long line of people wanting to buy what you sell.
    They believe that by buying from you, they will keep a competitor from having what you sell.
    explains (in part) how you do that:

    Originally Posted by Joel View Post

    demonstrate superior value
    demonstrate superior quality
    demonstrate superior ROI
    have a 'premiere' brand
    But people won't pay you more despite all the possible ROI, the fact you wrote a book, or because your product's superior, or that others want what you sell... unless first they see what you have as the answer to their dreams.

    And then, they still won't pay you more because they have to feel they've been given a good deal and not over paying.
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    • Profile picture of the author ewenmack
      Re: People Will Pay More if ...

      You ask for more.

      Even if all else stays the same.

      End

      Best,
      Ewen
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      • Profile picture of the author ewenmack
        Re: People Will Pay More if ...

        The timing is right...

        as in an emergency.

        End.

        Best,
        Ewen
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