understand the strategies for getting people to pay more A Nielsen Survey in 2016 found that 62% of consumers will pay a premium for trust. It was found that if a brand’s claim of being environmentally responsible can be trusted, consumers will pay a premium. Trust is critical in establishing brand loyalty. It is also […]

understand the strategies for getting people to pay more

A Nielsen Survey in 2016 found that 62% of consumers will pay a premium for trust. It was found that if a brand’s claim of being environmentally responsible can be trusted, consumers will pay a premium.

Trust is critical in establishing brand loyalty. It is also critical in commanding a premium price for a good or service.

Other strategies that can command a premium price include:

• making the product easier to buy
• offering faster delivery
• incorporating a unique must-have feature
• minimising running costs
• superior customer service
• demonstrating reasons for higher pricing
• establishing a mutually beneficial relationship
• maximising dependency

Many of these strategies seem intuitive. This begs the question, why are they not being used more frequently, and more effectively?

Why is there also so little appreciation of the fact that increasing the price can increase the prestige of a product, which, in turn, can deliver increased sales?

The approach to pricing in Australia, even by larger businesses, is frequently naïve and backward. Certainly, it tends to lack sophistication.

It makes sense for people setting prices to understand the strategies for getting people to pay more. However, in my experience, few do. Do you?

Source of core statistics – NIELSEN 2016

READ MORE – www.djohncarlsonesq.com 

D. John Carlson – Adviser and Speaker – 0402 273 350 or [email protected]