Customers are Willing to Pay

Customers are Willing to Pay

It may be somewhat of a myth that customers only want to pay as little as possible. In fact, a customer is willing to spend more money if certain variables come into play. For example, a highly functional product that costs more may sell much better than a poorly functional product at a cheap rate. You get what you pay for, right? There are several different reasons why customers are willing to pay the extra buck.

If your product is easy to purchase you’ll be more likely to sell it. Customers don’t want to deal with the hassle of walking through a desert to get a cup of water, they’ll be glad to spend the extra dollar for a little convenience. The same goes for time. If your product arrives faster than your competitor’s, you have a great advantage. Customers want their products sooner than later, and waiting tends to extinguish the excitement of the purchase.

Having features that stand out really helps. Sometimes a product may be identical to another except for maybe one feature. If that feature is a bonus, and the customer sees its potential, it will sell more than the cheaper product without the so-necessary feature. Consumers may even buy luxury goods simply for the name. There is a wealthy identity in a purse with a fancy brand name, even though it may be more expensive than a cheaper knockoff.

You should never believe that customers won’t be willing to spend extra on your product. If you consider the market and remember how consumers think, you’ll be able to charge more for your product. Convenience and customer relations can be the keys to ensuring you have a high-selling product that beats out the competition.

 

Source: Inc.com