The price of a product, whether wholesale or retail, is about a lot more than just the cost to produce it plus a percentage for profit. It’s also about perceived benefits. For example, the price paid for a product tells the purchaser that the product will have benefits beyond the physical value of the product itself. This is why customers purchase luxury cars: there is a perception of expected benefit beyond the mere value of the vehicle getting them from one point to another safely.
In most businesses, the price paid for a product is not as cut-and-dried as “it cost this much, there is this much profit. End of story.” Buyers who pay a little more than the rock-bottom price for an item will have several expectations over and above the purchase price. They’ll expect to see better service and to gain further than otherwise because of what they purchased. These two things work in tandem.
Some companies are well-known for delivering excellent service to go with their products. It’s likely that this is the primary perceived value your customers may have about you when they purchase from you rather than a lower-priced alternative. It’s also what they’re most likely to mention when referring you to colleagues.
This should be a big part of your sales pitch. Your current and potential customers should understand your commitment to customer service. Not just with words and platitudes – these are overdone. But instead with concrete, “walk the talk” examples.
If your higher customer service standard and level of commitment are obvious to your customers, they’ll also, coincidentally, be more obvious to you and those who work with you in business. Setting a high standard, achieving it, and holding it are mostly about making it a habit and considering it a part of what you do. No matter what. When you see this, you perceive its value. That makes it easier to sell.
Your goal here, as we’ve discussed before, but it bears mentioning repeatedly, is to create value that is perceived as valuable. Do not aim to create the perception of value; rather, aim to create value that is perceived as such. This creates a higher price investment ratio for your customers who, in turn, will pay a premium in order to buy from you.