Whenever Someone Buys, They're Saying They Value Your Product More Than The Money They're Exchanging For It
Why Spend The Money Versus Investing It Elsewhere?
Unfortunately, most people price products in terms of the “thing” they are buying instead of the value.
To customers who are “price shoppers”... cheapest is best.
But there’s more to your product than just its price tag (they just don’t know).
You don’t want to give away your margins because of cheaper alternatives for your product, and you never want to compete on price because that’s a race to the bottom of the barrel.
So let's talk about how you can emphasize value and help your customers ignore the noise.
Justifying Your Price
If your visitor has gotten this far, then they must be interested in your product. However one of the most common objections that is going to come up is price.
The question is, why have you set your product for that price?
If it’s relatively more expensive than your competitors, why should your customers spend their money?
Is it better quality, experience, or outcome than others? Your visitors need to know because they’ve probably looked through your competitors website, and are comparing their options.
Justification #1 - Benefits
When you’re selling in a physical store, the salesperson has various ways to respond and deal with price.
However with ecommerce, we need to think carefully about how we present our products because we don’t get a second chance to prove that they’re worth it.
You can justify your price with your benefits. Here’s how…
Focus On Your Audience
Focus on the worries and issues your audience has (and show them how your product is superior).
Will the competition’s product live up to its claim?
Does your product help your customer achieve their outcome faster in less effort?
These factors are worth mentioning because it’s you versus your competition.
Moving Away From Price
Shift the focus from price to the advantages of buying directly from you.
For example, tell them about positive feedback you’ve received from other customers.
You can also point out the disadvantages of not buying from you, such as missing out on solving their problem or not meeting their desire.
Justification #2 - Quality
If you are selling a premium product, you are investing in quality and this means your price will be higher.
But if you don’t take the time to explain this, then how will they know?
This can also be used for products that are more labor intensive or hand crafted etc.
Ora shows a great example of their quality and why their visitors should purchase from them instead of their competitors:
Ora has testing standards for their product and shares their Certificate of Analysis to showcase the quality of their ingredients.
It also refers you to a page that shares all their test results and how they have third party standards that aren’t affiliated with their brand.
In their description, they also mention the uniqueness of their ingredients as “hand-picked highly-researched probiotics strains”.
And to back that up, they’ve shared a research paper from the National Center For Biotechnology Information.
Justification #3 - Comparison
To build the value of your product, you can also use an apples to oranges comparison.
This is where you compare your product to something else that is not the same, but has some kind of relevance. Here’s an example…
Apples To Oranges Comparison
“You can stand in line each morning waiting to buy your Starbucks coffee like everyone else.
Or you get our self timing coffee machine and have a hot, freshly brewed cup waiting for you each morning when you get out of bed.”
Here I am comparing the time saved while also taking a slight dig at the social status of waiting in a line each morning.
You can also do this with prices that are related but not exactly the same.
“You can pay $100 per session with your local masseuse, which would add up to over $5,000 per year if you got just one massage each week!
Or you could get our home massager for just $49.99 and have a relaxing, soothing massage at home any time you like (no booking, traveling, or waiting required).”
It really just comes down to how creative you can be about it, but a nice simple price justification that makes your visitor say to themselves “wow, that’s a good point” will always help you increase your conversion rate.
Price Justification = Increased Conversion Rates
To improve your conversions, we shouldn’t think too much about people who are purchasing your product (they are already buying).
We should obsess over those who come close to buying but have abandoned their cart in the last minute.
Since most of the time it’s because of price.
The overarching question circles back to “why should your customers spend their money versus investing it elsewhere?”