Sticker Shock? Use These 5 Tips to Avoid it:
“That’s too expensive.” When it comes to sticker shock, this is one phrase that will grate your nerves no matter what industry you’re in. It’s demeaning and downright frustrating. Sometimes customers aren’t able to connect the value of what you’re offering with the final price tag.
Even if your prices are clearly outlined and displayed, the final price may come as a complete shock. After 25 years in the industry, I’ve seen my fair share of fancy wishes and shoestring budget affairs. Here’s five tips to help avoid sticker shock.
This seems simple enough, yet often, companies don’t post basic pricing for potential customers to see. When your prices are available for customers to see before they even consider your company, they have the advantage of knowing what to expect. This helps them with planning a budget catered to using your company’s services. When your customer comes in blind, they’re more likely to experience sticker shock
Communicating your product’s value in relation to price is the most important, yet under executed process. If you pride yourself on quality, communicate that to your customers. With positive reviews, great product descriptions, or even a step-by-step procedure process, you add value to your brand that can outshine your competitors. When your customer knows each element that goes into creating the product they’ve chosen, they’re less likely to gawk at the price.
The oats are always cheaper once they’ve been through the horse’s mouth.
Knowing the amount of time, effort, and knowledge that goes into each product clearly affects the overall price. If you know what you’re selling and understand its value, you can pass that knowledge onto your customer.
Conversely, if your customer has one item in mind, but you know of another service that will fill their needs in a better way communicating said service to your customer is the right thing to do.
This may result in a lower sale for you, but what you gain in customer trust will be returned ten-fold.
While you’re not in business to lose money, if you plan on staying in business for a while, you must be able to empathize with your customer’s situation. If budget is an issue, figure out which aspects of your customer’s ultimate goal is favored and work from there. By trying to help in every way you can, you show your customer you want them to have the best experience possible.
If your customer is planning to use your company for more than one element of their event, suggest packaged pricing. By combining all products into one slightly discounted price, you win. Not only will your customer will save money, they’ll also save time.
Break it down
After all the products and services are discussed and ideas are drawn up, there’s still that pesky little issue of pricing that arises. Depending on the length of time spent with your customer, this part can be nerve wracking.
But, if you have each element of the pricing structure laid out, you put the power in your customer’s hands. They can feel better about the decisions they’ve made because they were given full knowledge ahead of time.
Will you still have issues with pricing? Sure, you always will. But, being open and upfront with costs will help avoid sticker shock in the end.
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