Buying Decisions: Rarely about Price, Always about Value
Customers decide to buy based on their perception of the value they’re receiving for the price they’re paying. Whatever you charge for your product, that price must reflect what your customer thinks your offering is worth. If nothing distinguishes your product, it falls into the category of a commodity, for which customers are unwilling to pay extra.
If a customer thinks your price is too high, expect one of the following:
The customer won’t buy.
The customer will buy but won’t feel satisfied about the value, meaning you win the transaction but sacrifice the customer’s goodwill and possibly the chance for repeat business.
The customer will tell others that your products are overpriced.
Before you panic over a customer calling you high-priced, keep in mind that the dissatisfied customer’s negative word-of-mouth is only bad news if others respect the person’s opinions regarding price and value. It’s often better to lose the business of a cherry-picking bargain hunter than to sacrifice your profit margins trying to price to that ...
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