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Old 28th March 2012, 09:41 PM   #1
AngelBiz
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Location: Detroit, MI
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Default How To Charge Premium Price (and Have Customers Love You For It)

It seems counter-intuitive to say that you will be able to improve customer satisfaction and increase sales while at the same charging more. Conventional wisdom says that if you are not doing well lower the price and customers will flock to your business. As natural as it seems, this is simply not true. Competing on price is not a sound business strategy for small business owners.

Pricing is a complicated topic. It is both art and science, which is why many small business owners have difficulty coming up with the right price. They end up pricing too low leaving money on the table. Before we show you different ways you can charge premium price you need to understand how customers make decision about buying your product. The price customers are willing to pay is the result of perceived value they expect to receive from your products. This is the most important fact you need to keep in mind when pricing your products. It is not about how much it costs or what your competitors are charging for it. And there are several ways in which you can increase the perceived value of your products.

Read more - http://www.smallbizviewpoints.com/20...ve-you-for-it/

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Old 12th April 2012, 01:25 AM   #2
SimplyCritical
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If you're going to charge more and not upset your customers than you need to be providing more. Perhaps a higher level of service of a more enhanced product, longer guarantees/warranties etc.

Without enhancing what you're offering I can't see how a customer would enjoy!?

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Old 14th April 2012, 10:26 PM   #3
AngelBiz
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Quote:
Originally Posted by SimplyCritical View Post
If you're going to charge more and not upset your customers than you need to be providing more. Perhaps a higher level of service of a more enhanced product, longer guarantees/warranties etc.

Without enhancing what you're offering I can't see how a customer would enjoy!?
SimplyCritical - Agreed completely. Premium pricing is not for everyone. You have to provide value in some of the many different forms - quality, bragging rights, products, peace of mind to be able to charge higher. Without it you will be heading for business exit in no time. Remember, customers are not stupid. They are able to tell the difference between paying high for premium product and price gouging without getting anything in return.

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