Every product, and every service has an expected, or established, price. Unless you are offering nothing short of a miracle, like the iPhone 1 was, odds are you’re selling something that someone else is also selling. The offering exists, its functionality and features are determined and the price expectations are set.
So how do you break through all of this and charge more? To do this, requires something special.
I often get asked by business owners how to sell more, but selling more is not difficult. The recipe exists: drop your price, increase your distribution, raise awareness or buy out the competition. Sorted.
But demanding a price premium? This is uncharted territory. It is like the early years of flying: wings and an engine got the plane in the air. A bigger engine made it fly faster; larger wings made it fly further. But to get the plane to break through the sound barrier….this required something special…
Charging more for something is like breaking through the marketing sound barrier. Very few companies manage to venture into this territory. Mostly we are all just trying to get our marketing in the air.
To be able to sell something at a premium requires you to build a brand, the holy grail of marketing. It means progressing beyond the Pareto principal where a focus on 80% is good enough, to obsessing over the 20% that is always neglected. Stuff like research; design; innovation and customer experience. In short, an integrated business strategy is needed where marketing is not just a stand alone function, but part of a total solution to the customer.
Essentially it means swopping your priorities around, from being primarily obsessed with the income statement, to being primarily obsessed with the client or customer. It is next level marketing that pushes a company’s professional boundaries. The result reflects on the income statement, but at the bottom, where it says “profit”.