So what do you do when you want to change something in the market in terms of how much you charge for a very similar product or service?
Let’s say you have a membership and you want to reprice it, or you have a physical product, and you want to reprice it. Maybe your logistics costs have increased, and you need to increase your rates. Maybe your membership is not selling well at the level that you want so you need to change it. It doesn’t even matter if it’s up or down.
But one of the easiest things to do instead of just changing the exact same thing is to differentiate your price. So this is what I teach clients, make it an apples versus oranges comparison. Bedding companies do this, they get the exact similar mattresses from the source, but they change the specs just a little bit, slightly different foam, or a different color or different materials so that they’re impossible to compare between shops. Car manufacturers do this. They’ll stick a few different hubcaps on the car, put a pinstripe on it, give it a cool name like, Vacationer. And they’ll put it out in a limited edition color. And then they can charge a premium for that.
So the short story is if you want to change your positioning, look for some differentiator that when it’s put beside the original product, you could argue that you’ve got an apples versus oranges comparison and they’re not exactly the same. And that helps you, it helps your customer, and you now have an easy way to put a new product out there. Version 3.0 or whatever. The refined updated or differentiated version of it, something’s not exactly the same, so it is not comparable.
Therefore, it’s a different price, different product, and you eliminate a lot of the tension and drama that can come from your existing customers or anyone who’s purchased something in the past who might be miffed or confused at why you’ve made such a radical change.
Hope you’ve enjoyed this tip.
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