Price Shoppers and Penny Pinchers

There are SO MANY obvious reasons why selling high-priced products makes more sense than selling low-priced products:

  • You need to make fewer sales to make more money
  • You need to inventory less product
  • You benefit from higher margins and therefore higher profit
  • You process fewer transactions which means lower processing fees
  • You ship fewer products, which means lower shipping and labor fees

Think about it for a minute: a Rolls-Royce dealership doesn’t need to sell as many automobiles as a Ford or Chevy dealership.

Why?

Because you need to sell more Fords and Chevy’s than you do Rolls to make a profit.

Here’s another example:

A consultant with 10 customers paying $10,000 a month retainers makes more money than one with 10 customers paying a thousand dollars a month…

…and he works less, too.

Let that “roll around” in your thoughts for a few minutes…

But here are a couple more reasons you may not have considered:

Reason #1. People who purchase high-priced products are far more likely to actually use those products and benefit from them.

As strange as it may seem, people who pay for a $1,000 coaching session, or a $10,000 monthly retainer, are more likely to implement the advice they receive from their consultant than they would if they were handed a $19 ebook.

People just don’t value “cheap” advice… nor do they implement it. No matter how good it is.

The higher implementation rate of high priced products means:

1.) More success stories,
2.) More glowing testimonials,
3.) More sales for you.

It’s a perpetual profit machine!

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Reason #2. People who purchase high-priced products complain less than people who purchase high priced products.

Think about it for a second: the “lottery ticket losers” you see in Facebook groups touting all that free crap, no money down, and make a gazillion dollars overnight, are the first ones to scream scam because they were expecting something for nothing.

You’d think the more money you spend on a product, the more discerning and picky you’d be. But that’s not the case. Most people will buy a load of crap because it’s either free or cheap, but they’ll be the first ones to complain because it didn’t magically turn them into a millionaire overnight.

Higher pricing attracts better customers. It also reduces the “hand holding” because they’re lower-maintenance (and probably better educated)… and tech savvy.

“Big Ticket” customers have better credit, have fewer complaints, have fewer returns, and they’re not a pain in the butt.

Price shoppers and penny pinchers are a pain in the ass on so many levels…

Something to think about.

Comments

comments

155 thoughts on “Price Shoppers and Penny Pinchers

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