Do you offer a premium product?
In most businesses, around 20% of your customers will pay you more for a premium priced product or service if you make it available to them
A premium pricing strategy involves setting the price of a product higher than similar products. This video demonstrates how we’ve helped one of our private clients add a premium product to their range.
So do you offer a premium product?
I bet I know the answer to that question! The problem is, in most businesses, there is no premium product made available and so that money never gets spent.
The money is there, and not everybody wants to buy the cheapest. I went to the Elvis exhibition at the O2 last year, and guess what, they had £3,000 replica jump-suits on sale. Guess how many they were selling?
2… A WEEK!
Unbelievable, that in a gift shop full of Elvis hoodies, pink Cadillac key rings and golf balls (yes…golf balls), TWO people a week were parting with over £3,000 for a nylon, replica jump suit…
…because it was on offer and they could!
There are examples of premium products everywhere. $40,000 crystal Magic Kingdom models in Disney, £500 Expresso machine in Starbucks, Apple products, priority ticketing…the list goes on.
Think that premium pricing won’t work in your business? THINK AGAIN.
The world has changed. People do want different things. And if you’re smart, you will work out and then implement what your premium priced product or service can be. All you have to do is make it available and, if you’ve done it correctly, some people will buy it and your profits will go up as a result.