I don’t know why but a lot of fitness entrepreneurs believe that clients purchase products based on lowest price. But study after study shows this to be false. Even in a tough economy, quality outweighs price almost every time.
The popular online stores like eBay and Amazon have done extensive research to show that price is not the top concern of consumers. They are more concerned with the availability of unique items, seller’s ratings, and quality service. This doesn’t mean that people don’t buy based on lowest price because there are some consumers that do, but they are definitely the lower percentage of the group.
I recently read an article in Microwave Marketing where this type of consumer is referred to as “not so good customers”. The article talks about the people who are forced to buy where money is tight and they scrutinize every purchase. Dan Kennedy himself has faced these buyers in his business where the consumer buys a course thinking it’s the solution to their problem, never uses the product and it sits on their shelf. Then, when they need money they remember the money back guarantee and send it back for a refund.
Don’t let this small population of low price shoppers affect the way you price your products and service.
Here’s another great example of consumers who put quality above price even in these bad economic times. Have you heard of The Barkley Pet Hotel and Day Spa? It’s a pet spa and hotel (just like the title says) in Cleveland, Ohio. Now before I go into this pet hotel let me give you a little recent background on Cleveland. It’s currently one of the poorest areas in the country and is in the top four cities of the United States with the biggest decrease in housing prices. This town has truly suffered because of the recession, but when it comes to their pets, none of this really matters. These are the type of customers you want to focus on.
If you were to check out The Barkley Pet Hotel and Spa’s website you would think you were visiting a first class hotel. It’s definitely no Motel! This place truly has all the amenities of a 5 star hotel and they are not hurting for business. In fact, pet owners and their animals have to be interviewed before they are accepted. So how does a place like this that’s located in a place hit hard by the recession make money? It’s called Quality Service!
When you provide quality products and service, customers are willing to pay a premium rate. If you are good at what you do, provide value, and ensure your customers are treated with the best service possible they will have no problem paying premium pricing. Don’t feel you have to lower your standards and therefore your service because of the “not so good customer”. Offer premium products and service and you will get premium returns!
I agree with this 100%! We add a ton more value to our semi-private and personal training programs which are 3-5 times more expensive than boot camps and we sell more of those packages and retain them longer. People are willing to pay top dollar if they think you’re worth it. Great post!
You mentioned studies. Care to name any? or better yet, provide links?