Define Who Will Buy Your Product for a Premium Price

Posted by: Rod Kurtz on September 18, 2006

One of the greatest challenges a business owner or manager faces is selling the company’s product for the highest amount of money.

Frankly, it is easier to sell a product that is priced low like a commodity than to do the work to figure out how to reach and sell to the customers who will buy a premium product.

The first question is, who is your customer base? Assess your premium competitors, and see how your product measures up to theirs. By assessing the marketplace, you can realign your product so that it fits within the higher-value market segment. Next, ask yourself these questions:

1. Who buys the high-value product, and how often?

2. What motivates your new target customer to buy this product?

3. How does your product help your customer?

4. Where will your customers learn of your product?

5. Where do they go?

6. What do they read?

7. How will they get it?

Using this information, redefine your unique selling proposition. Now you can reach the people in your market area who are hungry for high-quality products and will pay a premium price to get them.

Marilyn Holt, CMC
Holt Capital
Seattle

Reader Comments

Douglas Brydone

September 19, 2006 6:05 AM

I was able to continue with an idea I had because of being able to clarify my thoughts from these few words.

Thanks,
Douglas Brydone

Rob Frankel

September 22, 2006 1:02 PM

Um, that's a start, but the truth is that the Unique Selling Proposition died a long time ago. It's the Unique BUYING Proposition that counts. And that's where BRAND STRATEGY completely determines your success or failure. You have to be perceived as "the ONLY solution to THEIR problem" to establish your brand. Once you're perceived as the ONLY solution, there's no place else for them to go. They'll pay premium price and be glad to do so. Did I mention I have a best selling book on this? Heh, heh! It's call "The Revenge of Brand X: How to Build a Big Time Brand on the Web or Anywhere Else." Hope this helps!

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