Why You Should Not Be Afraid To Sell Your Items At A Higher Price?
Updated: Aug 7, 2020
Yes – that is right – I’m telling you that you that (in some cases) you should sell your items for a HIGHER price.
What the hell? Does Derick even make any sense? You guys must be wondering?
I mean, why would a buyer be more willingly to buy at a higher price as compared to a lower priced product?
I’ll tell you why: Buyer psychology.
You may believe that one of the main challenges you have when selling is your higher price. Because you always have doubts and hesitations around your higher price products, and because you are continually compared with your lower-priced competitors, it’s easy to conclude that your higher price makes selling more difficult.
Well, you are not alone. I used to have that kind of doubt when I first started out. Because I'm afraid that nobody would buy from me when I priced my products at a higher price tag value.
I used to do a simple testing where I priced one of my products at a lower value. A few days later, I did another similar testing but with a higher price tag (with a different packaging).
The product that has a higher price tag has more conversions as compared to the lower price tag.
The fact that you have a low price product in value indicates that what you sell is something worth less than its higher-priced competitors.
If what you sell was better than your competitors, it would be worth paying more to obtain. The lower price is an indication of a lack of value.
Still not convinced? Alright let's take a look at your local supermarket and you'll understand what I'm trying to say.
You would have probably noticed this by now. Supermarkets such as Morrisons, Asda, Tesco, Sainsbury (or whatever supermarkets that your local town has) all sell the same products that have the same ingredients and weight as items in their value ranges – but some cost twice as much.
For example, Tesco sells two 340g packs of honey – a Stockwell & Co glass jar honey that costs 99p in its value. However, the one in a squeezy plastic bottle costs £1.80.
Here's another example.
Both of these 1 litre cartons of Apple Juice contains 100% apple juice from concentrate but you'll pay 27p more for a more "appetizing" packaging.
If I were to buy a carton of Apple Juice, I will definitely buy the 82p as the packaging looks more "tasty" as compared to the 55p which looks more plain.
By increasing their price and making their packaging look nicer than their competitors, they’ve made a lot more money. Not just because they demand a higher price: But because people buy from them since it looks like the more expensive one looks more tastier and more premium than the cheaper one. And you can do this too in your shopify store.
To demand a higher price, you need to add trust to your listing.
That goes without saying. Increasing the price of your item creates trust (it must be worth more, otherwise they wouldn’t be listing it for more!). But that isn’t enough. You need to show the buyer why you are worthy of the higher price by showing them you have the added trust of your higher price.
How to add trust to your products to demand a higher price on your shopify store?
Want to add trust to your products on your shopify store? Here are some easy things you can do:
Use a plain background on your shopify store
Use a clear resolution product image (This is important)
Create a brand. Have a nice decent logo (You can make a nice decent logo for $5 on Fiverr)
Emphasis your positive feedback
Talk like you’re a professional, an authority. Discuss things like refunds, returns and shipping options in your listing. This makes you seem like a “real business”.
A final note that I would like to add on. When you sell with a lower price, you lack the ability to differentiate on anything other than price. That is, in fact, the model.
The truth of the matter is, when you sell the lowest price, you are actually indirectly looking for customers who are not interested in buying in the first place.
Believe it or not, there're plenty of customers who want more value and are willing to pay more. These are the customers that you want to acquire.
End of the day, it all boils down to what value you can offer to your potential customers.
Selling is hard when what you sell doesn’t create value for the customers.