A Price Is A Value
Affluent customers live in a world of exchanging and trading money for goods and services. They probably trade more frequently than many others, especially successful businessmen. Some of them trade seriously high amounts; they are in an investment mindset every day. They buy stocks and companies. They chase rare art pieces. They always buy wisely, getting value for money and returns on their investments.
Their key question is never about whether the price they will have to pay is too high or not. If they consider it too high, it means they cannot afford it and therefore, would switch to another product, at a lower price. Their only concern when they can afford it is: is it worth it or not?
The decision on price is not only related to monetary value: your customer understands that quality products cannot be cheap. Price is not an issue, as long as it is:
- - Affordable (the price is within his personal financial range)
- - Fair (the perceived value is seen to be correct)
Most of the time, a customer is capable of buying anything they look at seriously. You always need to consider that your customer can afford it: if not now, maybe later. If not himself or herself, maybe someone else can purchase for them later.
There is very often doubt about the fairness of the price, especially that some brands and vendors targeting affluent customers do not hesitate in exaggerating and over-pricing products, so as to create desirability and to be able to offer discount prices in trying to get maximum profit. Affluent customers learn to be cautious: you have to be aware of these sorts of schemes when you are rich.
A price is perceived as fair, if it is true and sincere. And a price is seen as correct if the item is worth buying.
- A true price
In many places, it is still the case that the prices displayed are not the real ones. In some countries, you know that you have to ask for a discount, or wait for the promotion period. Some brands place full prices at a very high level, and then sell with price promotions giving 20%-50% discount. At property agencies in some countries the price displayed is subject to negotiation, with a large range of flexibility. Knowing that the prices displayed are not always true, the customer is cautious and doubtful. It is never easy to be sure that the price given is the real price. Customers need to feel reassured, and feel that they are given a true price.
- A sincere price
Some prices are high and one just does not understand why. The quality and added value are not there. Products might be over-priced and therefore the price is not sincere. The price, even if it is high, will be seen as correct if it reflects the quality of the product, the prestige of the brand and the exceptional quality of the service rendered. Price has to be seen as reasonable.
- A price has to be worth its value
A customer needs to see that the price reflects the product’s value. Customers will compare similar products, brandsand categories. The price has to make sense and be justifiable. This is obviously the most difficult aspect to justify in order to convince customers to purchase.
Lisa: “Your bag is not cheap!”
Lucy: “It’s because you have very good taste!”
Lisa: “Is it under promotion?”
Lucy: “Our leather creations are fairly priced, for the level of quality.”
Lucy: “It looks expensive for its size...”
Lucy: “You might find a bigger bag for a lower price in a different
brand, with a different design and probably a different quality of leather and level of craftsmanship. I can reassure you that you do not need to worry about the price value of our bag: it’s fair and really worth it.”
Golden Rule Corner
It is never about how much money something costs but it is about the value: how good is the product?