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Low Price Or High Price Which One Is Better For Your Business? by Timo01(m): 11:27am On Apr 09, 2024 |
There is a wrong notion most business owners/professionals have, that "if you reduce the price of your products/services less than your competitors' that customers will rush it". Though temporary it appears to be true but it will hurt your business and your brand on the long run because you are attracting a wrong kind of customers/client into your business. I used to have the same notion in the past until I watched a video by Dan Lok that changed my mindset. You see even though you reduce the price there are category of people that will still not buy. They will think that probably it is not the best quality. That is why it is that cheap. Especially the rich people. The rich do not buy things because it is cheap. Sometimes the rich don't even buy because of the functionality of that product/services. The rich usually buy for two reasons (a) It is the best quality (b) Ego (They take pride in the fact that they are among the few that can afford that product/services) No body will believe you are the best if you are the cheapest. And If you are the cheapest no one will believe you are the best. There are two types of clients/customers. There are those who like to buy cheap stuffs and the second category are those who like to buy expensive stuffs. As a professional or business owner it depends on the category of clients/customers you want to attract into your business. For example the most expensive cars in the world is rolls-royce. That company has decided on the class of people they will sell their product to. It is either you can afford it or you leave it. And people are still buying it. If you want to attract those who like to buy cheap stuffs reduce the price and make it very cheap and you will attract those category of clients/customers. If you want to attract the other category who like to buy expensive stuffs, First, improve the quality of your products and services. Let the quality of your products/services be world-class. Let the quality be top-notch. Then increase the price, you will start attracting the rich and those who like to buy expensive stuffs. Read this short story: I went to look for hotel accommodation sometime ago. I went to several hotels around that place and their prices differ as follows: a. N40,000 per night b. N18,000 per night c. N15,000 per night d. N8,000 per night. You see all the hotels above decided on the kind of customers they want to attract based on their price and quality of service. And of course you know people are still patronizing all of them that is why they are still in business. There is something peculiar to people that sell something cheap. They hardly deliver the best quality because they will feel that they are giving out so much value at a peanut. They will feel cheated. You will notice they will make comments like "after all how much did you pay me that you will not allow me to rest?" But on the other hand, those who charge premium price have something in common. They deliver the best quality so as to justify their price and retain their customers/clients for more sales in future. What makes a seven star hotel to be called seven star hotel is not their building rather it is the kind of service they render there. If you go to seven star hotel their price is very expensive but they will treat you like kings. A fashion designer once made a pair of suit for Pastor Paul Enenche worth $9,000 (11.2M today's exchange rate) for free. When asked he said he makes suit for presidents and kings from different countries and his price was $9,000 per suit. The lesson here is as a professional or business owner the money you will make sometimes depend on a. The quality of your product/services b. The kind of clients/customers that are patronizing you. c. The popularity of your brand. Read more details in my book (From Zero to Multiple Clients/Customers) [Find the link to where you can download it here][https://timothyomatule.com/from-zero-to-m-clients/] If you find this post valuable, Pls share this post with anyone you love.
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