Why do buyers pay premium prices…
…and find great joy in doing so?
My wife’s purchase, by all standards, was actually quite modest, but I couldn’t resist teasing her saying “You’re expensive!”
She looked at me, smiled and said “I’m worth it!” Indeed, she is; she’s been the treasure of my life for 37 years.
The more I thought about her retort I realized how often we, as buyers, find great joy in some of the more expensive purchases we make. We make these purchases despite the fact that it’s not our habit to do so, despite the fact that it’s not in the budget and regardless of the fact that we really don’t need what we’re buying. We just want it.
Why is that? How is it that we can throw all logic out the window, spend incredible sums of money (money that we may not have) and experience great joy? Because we feel that we’re worth it.
All too often we overlook this aspect of pricing and how it enhances the customer experience. We forget that people ascribe value to what they purchase based on the price they pay. Buyers take great pride in acquiring the best when their perception is validated by the price.
It’s counter-intuitive, but you can enhance your customers’ experience by charging a premium price as long as the price is substantiated by value. Don’t deprive your customers of the joy of treating themselves to something special. Employ this simple technique and you’ll both be saying “I’m worth it!” And you’ll both be right.
- Are You Confusing the Market?
- Customers Only Care About Price