Rethinking PRICE

I came across a great little article from the Toilet Paper Entrepreneur blog (yeah, you read that right). It's quick little tips and short articles... perfect for that juice in the middle of a busy day.

Rethinking PRICE

Here is a little food for thought. Price is always the last consideration when making a purchase.
Customers only care about the price once they know, or better said THINK we know, what they are getting. I mean, have you ever said “How much does it cost?” when you didn’t even know what “it” is. Of course not. You first have to know the “it” before you ask the price.
For example, if I said, “it” costs $25 dollars. You would say, what costs $25 dollars. But, if I said the “it” is a can of Spaghettio’s and it costs $25, you would then know what you are getting. And you would probably conclude $25 is a rip off. If I said that the “it” is a can of Spaghettio’s that was found behind that stage at the original Woodstock festival, and Janis Joplin autographed it, then you might conclude $25 is a steal.
Same Spaghettio’s, different details, resulting in a different price consideration. Consumers justify spending money based upon their understanding of what they are getting. I mean, duh! The next time your customer asks “what’s the price?” they are telling you they believe they have all the information they need.
The thing is, if they don’t know much, they won’t be willing to spend much. If you want to sell for top dollar (and you should), you must first share all the details on what makes you unique. Then and only then explain the price.
Don’t just be a can of Spaghettio’s. Be a once lost, but now found, autographed Janis Joplin can of Spaghettio’s.