Every business aims to get its customers to pay more for its products or services by doing whatever it takes to make it possible.
Simply because generating income is one of the reasons why they established the business in the very first place.
Whether it’s a big or small company, if you know you’re making enough money, you’re always inspired to make your business grow.
Plus, you also like the idea of getting loyal customers and putting a huge smile on their faces.
But how do you make your customers to pay more?
Sure, you can easily do that by applying a high markup percentage, except that it doesn’t always work unless your target market is the rich and luxurious.
And people are only willing to pay more if they understand how valuable your offer is.
If you know how to make your offer irresistible and valuable, then you can get customers to pay more.
But if not, just keep reading because that’s what today’s article is all about.
What are the 5 pricing strategies?
Before we talk about how you can get customers to pay more, let’s talk about pricing strategies first since it is an essential topic that you also need to consider before selling anything.
Multiple Product Pricing
This strategy is used by companies that offer multiple products that have different specifications.
For example, a smartphone manufacturing company produces mobile phones of different sizes, colors, storage, and other features.
Since the specifications of these multiple products aren’t similar to each other, they will be priced accordingly despite being the same type of product.
Differential Pricing
Pricing is usually different based on the type of customer for the same product.
This can be done by negotiating, periodic discounting, secondary market pricing, and random discounting.
Promotional Pricing
It’s a common type of pricing strategy that’s used to promote a product and attract potential customers.
Marketers like to offer special discounts on their launching day or other special events just to gain revenue while building brand awareness at the same time.
Here’s an example conversation:
Hey, have you heard about Jimmy’s? It’s that restaurant that just opened in our street and they’re offering a free meal to one person for groups of 5 who dine at their place.
Product Line Pricing
This is a pricing method that involves research and careful price determination to maximize the profit of products that have the same purpose.
One example is Company Y that produces hair products like shampoo, conditioner, and hair serum.
They usually add a description that does like this,
“This shampoo is best used with the Company Y conditioner to achieve stronger and healthier-looking hair.”
Psychological Pricing
A common pricing strategy that you can see anywhere, and it’s actually very effective since it works by influencing the perception of customers.
It mainly has 5 types specifically; reference pricing, bundle pricing, multiple-unit pricing, odd-even pricing, and prestige pricing.
How do you motivate customers to buy your product?
Building a relationship with your customer establishes trust that may affect their buying decisions.
You can use the following techniques to motivate them to buy your product:
Provide them with a valuable offer
Value is what drives customers to make a purchase no matter how expensive or cheap a product or service can be.
You can do that by telling them information about your product and what potential benefits they can get out of it.
Tell a story
Telling a unique story about how you came up with the offer like which country inspired you to make it or what experience motivated you.
With this method, your prospects will feel a connection especially when they also experienced the same thing.
Make them feel special
If you’re offering a product or service, you should always try to make your customers feel special by giving a positive attitude towards them.
This makes your business look more attractive and might even get more returning customers in the future.
Why are customers willing to pay premium prices?
Customers tend to pay more for premium products or services especially when they achieve faster or high-quality results.
For example, an individual wants to achieve great eyebrows but hates spending extra time putting on makeup that only costs $$.
Then they were offered microblading services that cost $$$ and instantly gives them high-quality eyebrows that no longer require makeup for a few months or even years.
Not only does it saves them time, but the product itself is worth the price that they paid for.
Why do consumers purchase more at less prices?
Buyers tend to purchase more products at a cheaper price because they don’t always consider the quality since they find these products as good deals.
Good deals = Big savings
However, it doesn’t always work that way since it can also depend on the demand and supply of a product.
If the demand is high and the supply is low, consumers are very much willing to pay more for the product.
Why do you need to add value?
Take note that people are very much willing to pay more if the offer is valuable and they know that can get the most out of it.
Most people will always ask for the price of the product first and then walk away if they find it too expensive.
But don’t just let them walk away, because you might not get another chance to demonstrate the potential benefits they can get from your offer.
You need to try to convince them by telling them that your offer is actually greater than the cost and you can do that by explaining everything especially if it’s a bundle.
However, there’s also another way to get customers to pay more and we will be discussing that in the next section.
How do you get customers to pay more?
Convincing customers to pay more might sound too good to be true, but trust me on this one because you can surely relate to our example and might want to try this method ASAP.
Teaser
You can start by offering a cheap or free product or service that they think is valuable for them.
Just like what most companies that offer “Free Taste” on their food products, as an example.
First Offer
You can then give them another offer that’s more valuable than before and might cost extra.
Since they want more of what you teased them about, they’re pretty much willing to get the whole thing too.
Going back to our first example, after getting the Free Taste offer, the consumer will start to wonder what ingredients were needed to make it.
So they ask the salesperson, “Can I get more of these?”
The consumer will then be presented with an offer of their newly-released product.
It’s a box of ready-made ingredients that they can get for $$, or $$$ for twice the ingredients, and a bonus webinar that they can watch at home.
Second Offer
This is another offer that’s way better than the first two.
After your customer buys the $$$ product from the first offer that included a free webinar, they will then be presented with another offer.
It’s a new recipe that they can also make at home, but it costs more than the first offer.
This second offer comes with one recipe, a free webinar, and a bonus cookbook, so they can make more at home.
You might be wondering if there’s another offer for the $$ product, right?
Well, it actually depends if you wish to give them another offer and it still works the same since you only need to give them another valuable offer.
As you can see, this is usually how a sales funnel works and what we’re talking about is a strategy that you can learn more about on our DotCom Secrets Review.
Last Offer
You can choose to make the second offer as the last, but if you want to make more money, you can give them one last offer.
This is an offer that they couldn’t resist and might cost the highest.
If your customer grabbed your second offer, you can offer them a subscription plan that they can pay monthly or annually, or even a 30-day course.
Since we’re selling ingredients and training from our previous example, we can give them another offer like these:
- 30-day Cooking Course ($$$$) that includes learning the basics of baking, learning how to cook appetizers, cooking no-bake recipes, and certificates for completing the course
- A monthly subscription plan ($$$) that comes with recipes and ingredients delivered to their doorstep, plus exclusive recipes included as a bonus.
- A yearly subscription plan ($$$$) that comes with recipes (plus bonus recipes), ingredients, exclusive merch, and one year access to their premium members-only website).
Can you imagine how effective this strategy is?
To think that a simple “Free Taste” was turned into a valuable offer that hooked your consumers into buying more from you.
If you wish to learn more strategies on how to get customers to pay more, we highly recommend reading our DotCom Secrets Review.
