There’s nothing wrong with offering a deal on your product; especially since shoppers are always on the hunt for a bargain. But if you find that your product only seems to attract bargain shoppers, your brand may have a problem communicating its value to customers.
There are several reasons why a customer may want a brand to lower the price of an item. They may need your product to solve a problem, but feel the price is unaffordable. They may be “hagglers,” or people who enjoy negotiating down the price of an item because it’s a thrilling experience that makes them feel like they are winning something of value for free. Or they may want the product but feel that it simply doesn’t offer enough value for the price.
We all want to keep customers happy and spending money. But before you incentivize purchase with discounts or sales, here’s how to increase sales without lowering price.
How to Increase Sales Without Lowering Price
Sure, there are times when having a sale is a good idea. Maybe it’s a holiday or maybe you want to get rid of low stock. But you should never feel pressured to discount items in order to meet basic sales goals.
In the old days, a grocery store sale may have been called a “special.” This was a smart marketing strategy, as discounted prices should feel special to the customer. However, when offering discounted prices, you must make it known that these lower prices won’t be around forever. While this sense of urgency can help drive sales, you must also be mindful of the drawbacks. Frequently lowering the price of your product can reduce its value in the eyes of your customer. And that’s the worst thing you can do to permanently impact profitability, as no amount of short-term gains are worth damaging your brand’s value.
So what’s a savvy retailer to do? Learn how to increase sales without lowering price. That means creating value in the minds of customers, as they will weigh the price you charge against the benefits you promise. Start by demonstrating why your product is worth the price, and customers will pay it.
Your product may have functional value. It may save customers time, make a process easier, give the customer variety, or connect them with other people. It may reduce risk, prevent problems, or make the customer more organized. Assert the functional value of your product and customers will see what problems it solves.
Your product may also have emotional value. It may be rewarding, reduce stress or anxiety, be lots of fun, create heart-warming nostalgia, create beauty, or have ego or “badge” value. You may notice that the types of value your product can offer corresponds to the needs that people have. This trend continues as products can meet peoples’ higher-level needs, which are often associated with your brand itself, not just with your product.
Your product can also help people feel they are aligned with their values. It may affirm their membership within a community of people, motivate them, or help them feel they’re reaching their full potential.
Finally, your product can have a social impact that can help your customers feel they are participating in the betterment of society. Tap into all the ways your product offers value and not only will customers be willing to pay full price, but your product can help customers lead happier lives.
Once you understand the value of your product, assert this value throughout the sales process. Communicate how customers can benefit from your product; from its functional value to its ability to connect the customer to their communities in fulfilling ways. And when you’re about to make a sale at the full price-point, don’t be tempted to lower the price at the last minute. This is called “misalignment,” and it unnecessarily lowers your profits. At this point the customer is already persuaded to buy and a discounted price isn’t needed.
Remember, your product creates value. The higher you keep prices set, the more value your company will retain.
Partner With Shopkick and Retain Your Brand’s Value
If you’re wondering how to increase sales without lowering price, try using a shopping app like Shopkick. Shopkick allows brands and retailers to engage with customers at every touchpoint of the purchase journey, and communicates the value of a brand without the use of margin-diluting discounts. By interacting with customers through an app that rewards customers for shopping, brands often find that deal-seekers won’t mind paying full price when they can earn something in return, like free online gift cards.
Keep prices the same, preserve the value of your brand, and give customers valuable, earned rewards using Shopkick.
The next time your brand needs to increase sales, don’t put valuable merchandise on clearance. Keep prices the same, preserve the value of your brand, and give customers valuable, earned rewards using Shopkick.
Shopkick is an app that helps our partners win new customers and increase sales numbers without ever having to compromise on price point. To learn how we have helped other companies like yours increase sales, check out our success stories.
Image courtesy Dragon Images