Find out what customers want. Consider their demographic then create a product, a pricing strategy and promotions that will drive sales. Everything is good, until others enter the market and start a price war.
Plan wisely to avoid this problem by understanding the human need for identity and belonging.
Pricing must also reinforce who your customers want to be.
Think about some dates you have been on. Some at expensive restaurants. Others at cheap laid-back ones. What did each place project? What was intended for each place to project on behalf of the person suggesting the venue?
High price could project success. It could project care and love for whom you are buying the product for. It could project your taste in quality and exclusivity. On the opposite spectrum, low price could project prudence – a value purchase by a smart shopper. It could project a carefree and down to earth character.
A product that does not reinforce the right identity and emotions is only a commodity that is susceptible to price war. Help your customers reinforce and communicate the identity they want to have – the people they want to be – with not just utility and design but also with the right price point.
Join our community discussions to learn more about this and other useful business psychology that have helped many reach success. – MindMode Group