If people have a despirate need they will pay a higher price – but they will resent it.
If people have a true WANT for something – they will pay a higher price and love it.
Think of Apple – when a new phone comes out everyone WANTS it (there is no need, it’s pure want)…and they are prepared to pay a high price for that want.
Conversely, we were in Venice and (from what we have seen so far on our journey around Europe) they have the most expensive public toilets!! EUR1.50 – and there is still a queue.
But the thing is – the public toilet – it’s a NEED not a WANT.
There is no alternative when you need the toilet but to pay up (every public toilet we found in the city was the same price).
But the thing is – that causes resentment – I was annoyed at having to pay EUR1.50 for the toilet!! (Yes it’s not much money overall, but most other cities are charging EUR0.50 – so it’s a big percentage difference!).
Now it wasn’t annoying enough to stop my enjoyment of Venice overall (that would be silly in this case) – but it is the case that when people are purchasing something which feels expensive because they have no other option then it does lead to resentment.
It is FAR easier to sell something that people WANT at a high price and end up with raving fans, then when people NEED something and pay a high price.
How are you structuring your business between things that people need and things they want…and how is your price aligned with those to avoid any resentment happening with your clients.
Thanks ever so much for taking the time to read my post I truly hope you’ve found it useful and insightful. If you have any questions feel free to contact us!
I am Annette Ferguson, CEO of Annette & Co. Chartered Accountant, Profit First Professional and creator of the Business Wealth Engine. We’re also SUPER social so don’t forget to follow. Here’s to your success!