You're Not Selling Products. You're Selling Money.
Your customer should never walk away from a transaction feeling like they got screwed. In fact, they should feel the exact opposite, like they got a damn good deal.
Sure, it may sound rudimentary, but you would be surprised by how many businesses try to squeeze every last dollar out of their customers.
And, while this type of pricing may work for a day or a week or a month, eventually it will turn around to bite them in the butt –– putting the business out of business
Look at the affects Amazon has had on so many businesses over the past decade? Amazon is taking over the world by doing one thing really well –– giving their customers the best value.
You disagree? What is the first thing you say when you see something in a store that is too expensive? I'll just get it on Amazon.
While Amazon won't be able to take over every market, other businesses that focus on giving customers the best value will. Keep reading and I will share with you a real-life example where businesses are outrageously over-pricing their products.
An $8 cup of coffee
If you get a hankering for a cup of coffee in Honolulu, you better have $8 on you ($9 if you are a gracious tipper). Due to transportation costs and competition, Honolulu is home to the most expensive cup of joe –– coming in at a wallet-wrenching $7.56.
Now, I don't care how expensive transportation costs are or how stiff competition is, there is absolutely no reason why anyone in their right mind should charge $8 for a cup of coffee.
Eventually, somebody is going to get smart and start a coffee truck business in Honolulu that sells quality coffee for just $2.56 a cup.
And, when they do, they are going to be the hottest coffee retailer in the Hawaiin islands (pun intended). Not because they are selling coffee, but because they are selling $5 bills all day long to caffeine-deprived customers.
You're in the business of selling money
While not in every case, most of the time you are in the business of selling money. So, instead of asking yourself how much you can get your customer to cough up for your product, you need to be asking yourself what is the price I can charge to make my customers feel like they are getting a damn good deal?
It's really that simple.
If you can offer your customer the most value selling your product at $100, don't charge them $250 for it. You aren't in the business of making yourself money, you are in the business of giving your customer the most value.
By Cole Schafer
You gotta check this out -- Sticky Notes is my email list reserved strictly for entrepreneurs and creatives looking to sell like a Florida Snow Cone Vendor on the hottest day of the year.