How To Sell At Higher Prices Than Your Competitors
Would this increase or decrease your Internet business income...
...if you charged 10% to 20% more for your products or services than your competitors do?
Most entrepreneurs... right off the bat... think if they had the highest prices in their marketplace that they'd lose business and struggle to get customers.
Not so.
When you understand the right way to position and present your prices, your higher fees become irrelevant to most prospective customers.
In fact, when positioned and presented correctly, your higher prices will actually make your products or services more appealing to prospective customers.
It's all in the presentation of your prices.
So, what's the correct way to present your prices so you can successfully charge more than your competitors?
Well, there are a couple of ethical tricks to get prospective customers to see the value in paying more for your products or services than a competitor's.
Let's talk about one of the methods.
It's a method I stumbled upon while doing some work in the fitness industry.
You see, the company I was working with owned several health clubs in the central New Jersey area.
And, all of their clubs had higher membership rates than all of the other surrounding health clubs and gyms in their area.
So, how did staff members handle that when walking prospective members through their facilties?
Well, they brought up the fact that their club's fees where higher than their competitors fees - BEFORE the prospective member had the chance to say that.
Huh?
Yes... you read that right...
The health club company staff actually brought up the higher fees themselves, before the prospective member had the chance to, and then actually bragged about them.
Why would they do such a thing?
It's actually pretty simple.
The staff was trained to bring up the higher price and brag about it to prospective members as a way of explaining away the "price objection" and eliminating the need for the prospective member to ever bring up the higher price again.
The staff members actually took the higher price and turned it from a negative into a HUGE POSTIVE.
Let me show you how they did this.
Here's a little example of what they would say about their higher fees as they were touring a prospective member through one of their health clubs.
"Now, because we have higher fees than most of the clubs around here, we never get overcrowded, you never have to wait for equipment, and you'll always be able to get in, use the exercise equipment you want, and then get out in the shortest period of time possible."
So, now, think about it...
What could the prospective member possibly say about the higher fees?
Nothing.
Why?
Because in the above example, a valid reason was given for the higher fees.
In fact, the reason given for the higher fees actually conveyed several benefits - never have to wait for equipment and will have efficient, convenient workouts, etc.
Basically, what the staff members were communicating to prospective members was this:
"Sure you can find cheaper clubs.
But, they'll be overcrowded, you'll have to wait for equipment, and it will take you longer to get your workouts done (how much is your time worth).
If you're aok with that, and that's what you're looking for, there are several cheaper clubs to go to. BUT, if you're looking for a club with all of the benefits we've already gone over, here are our fees..."
Now, they wouldn't actually say that, but they certainly conveyed it implicitly in their presentaiton.
And, it worked like gangbusters for them.
The point: there's nothing wrong with having higher prices than all of your competitors as long as you can give prospective customers a valid reason why - a reason that they benefit from.
And, if you can bring up the fact that you have higher prices and then find a way to brag about them (because of a benefit you give customers that nobody else does), even better.
All in all, remember, if price was the only thing people considered when making purchasing decisions, we wouldn't have Nordstrom's, Starbucks, Mercedes Benz, first class plane flights, or Marriott's.
Everybody would be shopping at Walmart, drinking Dunkin Donuts coffee, driving a Hyundia, flying coach, and staying at a Motel 8.
But we know that doesn't happen.
Why?
Because people make their buying decisions based on value.
And, it's your job to show them the added value they get with you and your higher prices.