Answers
May 15, 2017 - 09:56 AM
Here are some techniques that come to mind. We've used some of these successfully:
1. Explicitly compare it to a more expensive product/service in your industry. For example, one of our clients sold premium insoles to seniors who are generally cash strapped. Many complained about the price and didn't see why they should spend so much when Dr. Scholl's cost about $10. We wrote landing page copy that compared their product to custom orthotics which cost anywhere from $600 to $3000.
2. Break the price down to the ridiculous: If you ask a Boeing salesman how much a 787 costs they are unlikely to say $400 million but rather "x dollars per passenger mile". Even though the prospective airline generally knows the rough ballpark figure, the latter way of the expressing the price is more palatable. For the insole customer mentioned above, we figured that a pair lasts 6 months with heavy use. We than divided the price by 180 days (6 months) and showed the daily cost was far less than that of a cup of coffee. Surely your daily cup of coffee or tea costs 10x as much!
1. Explicitly compare it to a more expensive product/service in your industry. For example, one of our clients sold premium insoles to seniors who are generally cash strapped. Many complained about the price and didn't see why they should spend so much when Dr. Scholl's cost about $10. We wrote landing page copy that compared their product to custom orthotics which cost anywhere from $600 to $3000.
2. Break the price down to the ridiculous: If you ask a Boeing salesman how much a 787 costs they are unlikely to say $400 million but rather "x dollars per passenger mile". Even though the prospective airline generally knows the rough ballpark figure, the latter way of the expressing the price is more palatable. For the insole customer mentioned above, we figured that a pair lasts 6 months with heavy use. We than divided the price by 180 days (6 months) and showed the daily cost was far less than that of a cup of coffee. Surely your daily cup of coffee or tea costs 10x as much!
May 15, 2017 - 07:00 PM
There are a couple ways to deal with a high price.
1. Our product may have a high price, but our value and quality exceed that of the competition. Let me give you some specifics… then detail how you differentiate – but don’t do it on features – do it based on the value you deliver.
2. Get the prospect to compare you – when they suggest you are expensive, a good response is compared to what? Then you give the prospect the opportunity to let you know exactly who you are up against. With that information, refer back to point 1.
3. Provide an ROI. What does your product allow your prospect accomplish? What is the value you can associate with that accomplishment? Allow the customer to help you set the parameters of the comparison so you are using their numbers to build the ROI. Again in this case, you back to building value on the with the specific data points your buyer values.
4. And should you really want to blow them away…. Feel, felt found. I understand how you feel about our price (empathy). Many of our clients felt the exact same way. (group association your not alone) And what they found after using it for x period of time or experiencing y features was elation, glory, satisfaction and praise from their boss, friends and lover. (follow me to the promised land and you can be part of this special group – our satisfied clients.
1. Our product may have a high price, but our value and quality exceed that of the competition. Let me give you some specifics… then detail how you differentiate – but don’t do it on features – do it based on the value you deliver.
2. Get the prospect to compare you – when they suggest you are expensive, a good response is compared to what? Then you give the prospect the opportunity to let you know exactly who you are up against. With that information, refer back to point 1.
3. Provide an ROI. What does your product allow your prospect accomplish? What is the value you can associate with that accomplishment? Allow the customer to help you set the parameters of the comparison so you are using their numbers to build the ROI. Again in this case, you back to building value on the with the specific data points your buyer values.
4. And should you really want to blow them away…. Feel, felt found. I understand how you feel about our price (empathy). Many of our clients felt the exact same way. (group association your not alone) And what they found after using it for x period of time or experiencing y features was elation, glory, satisfaction and praise from their boss, friends and lover. (follow me to the promised land and you can be part of this special group – our satisfied clients.
May 15, 2017 - 07:07 PM
In addition to what is already mentioned (i.e. applying contrast principle)
One key would be to create a lack of trust with the severely under-priced competition. What I mean is to tap into that conventional thinking (that always isn't true but is enough to exist) that you "get what you pay for"
But you can't come out and just say it - you need to help the visitor come to the conclusion themselves by bringing attention to the issues with copy and imagery comparisons that create doubt and in some cases instill fear in the alternatives. Not everyone's crazy feelings about the competition's low-ball price will be reversed but there are a significant group more likely to experience a reversal in feeling (where now it's too much of a risk to just pay that low amount). And those people will also carry a larger average customer lifetime value.
This can be executed in a fully integrated campaign.. such as top of funnel blog content (how to choose X), email capture and nurture emails that deal with the issues, all the way to the product pages, promo emails and ads themselves
One important note - is that in order for this to really have an effect, you need to make sure that the issues you are discussing are the relevant ones to your audience.
For example: If you're selling a mattress, it's stronger to make the comparisons on the mattresses effects on your health rather than comparing the number of springs, configurations and padding.
Other keys include:
One key would be to create a lack of trust with the severely under-priced competition. What I mean is to tap into that conventional thinking (that always isn't true but is enough to exist) that you "get what you pay for"
But you can't come out and just say it - you need to help the visitor come to the conclusion themselves by bringing attention to the issues with copy and imagery comparisons that create doubt and in some cases instill fear in the alternatives. Not everyone's crazy feelings about the competition's low-ball price will be reversed but there are a significant group more likely to experience a reversal in feeling (where now it's too much of a risk to just pay that low amount). And those people will also carry a larger average customer lifetime value.
This can be executed in a fully integrated campaign.. such as top of funnel blog content (how to choose X), email capture and nurture emails that deal with the issues, all the way to the product pages, promo emails and ads themselves
One important note - is that in order for this to really have an effect, you need to make sure that the issues you are discussing are the relevant ones to your audience.
For example: If you're selling a mattress, it's stronger to make the comparisons on the mattresses effects on your health rather than comparing the number of springs, configurations and padding.
Other keys include:
- Conditioning & Association where you pair your product with a person, event or experience so that your product can inherit the character of what it's paired with (which inherently elevates its value due to its greater relevance)
- Social proof (evidence of likes, follows, stars, etc) - improves trust
- Social learning campaigns and add-ons to product marketing content (I.e. everyday people youtube testimonials, for example) - significantly improves trust
May 16, 2017 - 05:47 PM
Here is a quick thought.
In most cases when a customer has objections it is because they have not clearly understood your value proposition. If you were able to satisfy the customer that your product was of a better quality or had a better feature set than the competing products they would understand why your product may be priced higher and would not be raising these concerns.
The key to overcoming objections is to understand what is causing the objection. To do this ask additional questions so you are able to clarify the root cause of the customer’s concerns. In most cases if you are able to address these concerns you will overcome the objections.
In most cases when a customer has objections it is because they have not clearly understood your value proposition. If you were able to satisfy the customer that your product was of a better quality or had a better feature set than the competing products they would understand why your product may be priced higher and would not be raising these concerns.
The key to overcoming objections is to understand what is causing the objection. To do this ask additional questions so you are able to clarify the root cause of the customer’s concerns. In most cases if you are able to address these concerns you will overcome the objections.
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