Why Customers Will Pay More

         

It sounds counterintuitive, but there are many circumstances under which customers might pay more for your products or services.

So says Geoffrey James, sales expert and frequent contributor to Inc. In his article, James offers numerous reasons why customers will “pay more for a product even when they can get a functionally similar (or even identical) product elsewhere for less.”

Here are some reasons why customers will pay more:

Easier To Buy

Customers can’t stand “futzing around with complicated purchasing and payment options.” They’ll often consider paying more if you canstreamline the buying process.

Faster Delivery Time

Everybody wants immediate gratification, right? “If you can gratify your customer’s desires sooner than the competition,” James says, “they’ll usually pay a premium.”

Has A “Must Have” Feature

Occasionally customers fixate on a particular feature, and that will drive their purchasing decision, rather than the cost of the product.

Makes The Customer Look Good

Customers (and businesses) often succumb to a luxury brand “because it makes them look and feel wealthy.”

A Lower Cost Of Ownership

Price is always a consideration, but so is the time and money you need to spend after a purchase is made. For example, James says, “an iPad costs more than a Windows netbook but requires less maintenance, thereby making it cheaper in the long run.”

Friendlier Customer Service

The other’s guy product is less expensive, but their customer service is horrible. “Companies underestimate the anger (and even hatred) that business buyers feel when they experience horrible customer service,” James notes. If they know you will handle their problems quickly (and with a smile on your face), these customers will likely pay more.

Not Worth The Hassle

Sometimes convenience trumps price. “Customers will keep purchasing something that’s higher priced if the difference between your price and the competitor’s price isn’t large enough to get onto their financial radar.”

They Like You

It’s true regardless of your industry – people do business with people they like. Developing rapport is a critically important because “it provides a buffer that keeps the competition at bay.”

They Want Something More

When a customer wants something more than just a business relationship – a job in your company or access to your business contracts – they will often pay more for your product.

The Customer Is Expanding

Customers whose businesses are experiencing hyper-rapid growth “usually don’t have the mental bandwidth to worry about what everything costs.” If your product meets or exceeds expectations, they won’t let price get in the way.

What can you do to make your product more attractive to customers?