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What would you do if customers find your product expensive

Discussion in 'General Business' started by lwseller, May 10, 2016.

  1. #1
    Hi i have an online shop and struggle to generate sales. I believe that customers find my product expensive
    SEMrush
    What would you do?
     
    lwseller, May 10, 2016 IP
    SEMrush
  2. sewepablo

    sewepablo Peon

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    #2
    Explain or rather persuade them that you are selling high quality products and that is worth their money. You can also do occasional promotions with discounts on specified items. Good luck.
     
    sewepablo, May 10, 2016 IP
  3. badboymarketer

    badboymarketer Active Member

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    #3
    You need to find a way to add more value. Let me repeat that, ADD MORE VALUE!
    You can create ebooks, audios, videos, any type of content your audience values and you dont have to pay to produce more than once. Use this as a tool to build a stronger relationship with your customers and it can create the opportunity for upsells at igher price points. You could make them opt in to receive the added value to create a list that you make offers to that fit your niche and monetize it further.

    Find a way to add value, build the relationship further by adding the value and create bigger and additional sales because of it too!
     
    badboymarketer, May 10, 2016 IP
    eric_wahlberg likes this.
  4. badboymarketer

    badboymarketer Active Member

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    #4
    What percentage of your customers convert into a sale?
    Do you know your numbers? Do you know what the industry average is for your type of site?
    How much have you A/B tested to improve conversions?
    Do you capture their email to keep them in your circle of influence?
    Is your traffic getting lost at your cart for some reason?
    Is your USP, Unique Sales Proposition - Quality to command the price you do?

    The difference between the successful marketers and the rest is they test more than everyone else!
    Know your numbers and find ways to improve them
     
    badboymarketer, May 10, 2016 IP
    sarahk likes this.
  5. Cybercat

    Cybercat Greenhorn

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    #5
    I totally agree with badboymarketer. You must find ways to add more value. Money is merely just another commodity, and people will gladly part with it IF they feel that they can trade it in for something of more value for them. So here it goes again, ADD MORE VALUE!
     
    Cybercat, May 10, 2016 IP
  6. JudySlean

    JudySlean Greenhorn

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    #6
    )))) Try to use the discounts! To be honest, price it is only a number! If you have a cool, interesting, and effective project your customers buy it in all price! Try to explain your price, and maybe discount it!
     
    JudySlean, May 10, 2016 IP
  7. WebmasterPhil

    WebmasterPhil Member

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    #7
    Offer bonuses. This helps a lot. You can also of course tinker with the price. Offers sales and coupons might also help.
     
    WebmasterPhil, May 11, 2016 IP
  8. dddougal

    dddougal Well-Known Member

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    #8
    Just go buy some additional stuff to add in...PLR or other products with MRR.
     
    dddougal, May 11, 2016 IP
  9. lwseller

    lwseller Greenhorn

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    #9

    My numbers are for targetet traffic i get one sale per 100 visitors with scarcity , with no scarcity 0,30 conversion rate. The only way found to increase fast conversions is only with limited time promotions, and i dont like that. I need to build organic traffic but struggle to do it as i have worked with some seo guys but too much money for nothing , i am searching on how to do seo by myself , do you have some good info on how to do seo?

    Other competitors are doing the same thing, its becoming a competitive market and the pricess are cutted off , none likes that
     
    lwseller, May 11, 2016 IP
  10. MVIBE

    MVIBE Peon

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    #10
    I would recommend you read predictably irrational by Dan Ariely. It is about relativity and how we make decision when buying. I found it interesting how marketers places items together in relative to prices to pursued buyers to make buying decision. The first few pages of the book have good information on subject of pricing.
    You use a decoy to pursue a person to buy an item. You can price one item very expensive next to an expensive item to help a buyer make easy decision on buying the expensive item. Decoy concept is very interesting for the marketers.
     
    MVIBE, May 12, 2016 IP
  11. Jason Watts

    Jason Watts Peon

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    #11
    MVIBE has got the right idea.

    Here is how it works.

    There was an experiment done selling popcorn at a movie theater.
    In the first part of the experiment people were offered two choices.

    Small popcorn for $3 or a large one for $7.

    Almost everyone chose the $3 popcorn.
    They all felt a $7 popcorn was way out of line.

    So then they changed the experiment a bit by introducing a third option.
    A medium size popcorn for $6.50.

    So now you have popcorn priced like this:
    • Small $3.00
    • Medium $6.50
    • Large $7.00

    Almost immediately the the $7 popcorn started selling like crazy.
    Mainly because for only 50 cents more you could get a large instead of a medium.
    To everyone it seemed like a great deal.

    When asked, people overwhelming said they thought the $7 popcorn was a great deal.
    Funny how introducing a "decoy" can alter people's perception of price.

    Now here's how you can apply it to your situation.

    Its a bit of a hybrid between what badboymarketer said above about adding value and MVIBE's decoy.

    The idea is this.

    First pick out a few items you want to sell more of and run this test.
    Next you will need to add an additional product (i.e. like a report/video on how to use the product, make it last longer, what not to do, etc)
    Then on a sales page for each of the of the items you picked out you will have actually two prices.

    One price will be for the unit by itself and the other will be for the unit WITH the extra added value products.
    Then you price it really, really close together - like within a few dollars of each other.

    Now when people see the sales page with the price they'll have the decoy effect working on them.
    Instead of comparing your price with everyone else, they will be comparing your price with the added value price.

    I do it on my own website and it is amazing how the higher price is the only one chosen.

    Here is an image of what I mean. When you look at it, which one would you choose?
    (By the way this is ONLY AN IMAGE -for illustration purposes - and NOT an invitation to buy)

    upload_2016-5-13_19-30-20.png

    If you have any questions about this let me know.
    I can recommend a book that goes into a lot more detail for anyone who is interested.

    Thanks,
    Jason Watts
     
    Jason Watts, May 13, 2016 IP
  12. lwseller

    lwseller Greenhorn

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    #12
    Hi, i got it! thanks, sure i ll try
     
    lwseller, May 14, 2016 IP
  13. Jason Watts

    Jason Watts Peon

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    #13
    That's great! Just be sure the whatever you are adding to increase the value is something irresistible and would be something a person would buy on its own.

    Or at the very least something that really compliments the product well.

    If you just offer crap or something unrelated to your product it won't work.

    Always, always, always give your customers more value than the price they pay.

    Remember....your job as a business owner is not to sell products but to make and KEEP a customer.

    The larger your customer list is, the more money you can make by marketing to them again.

    Jason Watts
     
    Last edited: May 14, 2016
    Jason Watts, May 14, 2016 IP
  14. Aaron Ward

    Aaron Ward Member

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    #14
    Maybe its not the price that's the problem.

    It's probably the value they're getting.

    People will happily buy something if it fixes their problem.

    Are you targeting the right people?
    Does your product fix a problem?
    Does it do it better than others?
    Is it the same as others but over priced?
     
    Aaron Ward, May 14, 2016 IP
  15. Jason Watts

    Jason Watts Peon

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    #15
    Aaron Ward brings up some excellent points.

    All those questions he mentions do need to be addressed.
    The problem (depending on the product) is in communicating that value to the customer.

    It's not always easy to do on all that on a sales page.

    But.
    Where it can be communicated effectively and in great detail is in an email marketing campaign.
    That's why building a subscriber list for your business is so crucial no matter if you are online or offline.

    In my experience I found I was able to take one product from our catalog and zero in on it with a series of emails.
    Each email would describe a single feature and talk about the benefits of it.
    A series can last anywhere from 5 to 20+ emails.
    Then I would pick another product and do the same thing.

    I especially would take any negative features and find a way to make it a positive.
    Like our price for example. Our equipment was priced the highest in our industry.
    In our email I would even acknowledge it and never apologize for it.
    Instead I would give all the reasons why it was the most expensive and use stories like buying a Chevy vs. Mercedes to illustrate the point (which, from then on, always made our prospect think of our competitors on an unconscious level as a Chevy).

    Sales, as a result of using email marketing, went ballistic on us.
    You can read more about my experience in email marketing at this post (https://forums.digitalpoint.com/threads/best-ways-to-market-a-new-online-store.2779913/#post-19334056).

    So the point is this.
    Email marketing is by far the easiest and most effective way to communicate with your customer.
    With it you can build a relationship with them so they get to know, like and trust you.
    And once they know, like and trust you it becomes infinitely easier for them to buy from you.
    No matter what the price is.

    I know because I've done it over and over again.

    Just remember, in sales, as with life, your success ALWAYS comes down to your relationship with your prospects/customers.

    In case you're dubious about the power of email marketing here's something you'll find interesting:
    [​IMG]
    Jason Watts
     
    Jason Watts, May 14, 2016 IP
  16. eric_wahlberg

    eric_wahlberg Well-Known Member

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    #16
    I suggest you to compare your price with your competitors. If your price is higher than them, then it is wise to provide discount else tell your customer that all of them are offering the same price.
     
    eric_wahlberg, May 16, 2016 IP
  17. NetStar

    NetStar Notable Member

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    #17
    How would you know your customers find your products too expensive? Perhaps you aren't marketing correctly to find your customers... or perhaps your web site doesn't look trustworthy or lacks credibility.... or maybe your customers find your web site to be difficult to navigate through... or maybe your shopping cart system is too complex... or maybe you don't have enough products... or maybe you have too many products... If these are general products odds are your average consumer will be visiting Amazon or Walmart or at least one of the many search sites to find inexpensive products...
     
    NetStar, May 23, 2016 IP
  18. Mybulen

    Mybulen Active Member

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    #18
    if you own an online shop then you need to go around the internet and see what your competitors are offering. you cannot convince someone to buy something for more when they can buy it for less so you need to adjust your pricing. online shoppers are savvy they won't buy from you just because the found your shop. Make less money move more volume. Sadly that is the way it is.
     
    Mybulen, May 23, 2016 IP
  19. wakkawakka

    wakkawakka Member

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    #19
    Nothing Is expensive try to reach that class where your product is suitable. and add some value added service to customer
     
    wakkawakka, Jun 12, 2016 IP
  20. Michael.ha91

    Michael.ha91 Banned

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    #20
    If customers find your product expensive, i think it means your products does not add any extra values compare to competitors but cost higher. It's better to adjust your price or change the way you're marketing: emphasis on which value your products can offer but yr competitors can't.
     
    Michael.ha91, Jun 14, 2016 IP