How do you stop customers from fixating on price? It’s a question that all businesses face, and the answer isn’t always easy. Price is an important factor in any purchase decision, but it’s not the only one.
If you want to keep your customers from fixating on price, you need to focus on delivering value. You need to provide a product or service that’s worth the price you’re asking for it. When customers feel like they’re getting good value for their money, they’re less likely to worry about the price tag.
In this article, we’ll cover 10 strategies that you can use to shift your customers’ perspectives.
How to identify price-sensitive customers
Before you can address this issue, you need first to identify which customers are fixated on price. The easiest way to do this is by looking at customer behavior, what types of questions customers ask, and what they complain about.
Do your customers always ask about discounts? Do they compare prices before making a purchase? Or do they complain about the cost of your products and services? If you answered yes to any of these questions, then your customers are likely price-sensitive and you need to position your products and services differently.
10 effective strategies to stop customers from fixating on price
Once you have identified which customers are fixated on price, it’s time to address the issue.
There are a number of different things you can do:
#1. Increase the value of your product or service
A great way to get customers to focus on something other than price is by increasing the value of your product or service. If they feel like they’re getting more for their money, they’re less likely to worry about the price.
You can increase the value of your product or service by adding extra features, improving product quality, providing better customer service, or including more perks.
Let’s look at a few examples.
If you have an e-commerce store, then you can increase the value of your products by offering free shipping and two-day delivery!
If you offer freelance services, then you can increase the value of your services by offering free revisions or a money-back guarantee.
If you work for a tech company, you can stand out from the competition by providing superior customer service, faster turnaround times, and a better online support center.
If you offer business coaching sessions, you can increase value by providing more perks or including complementary services like SEO optimization and social media marketing audits!
There is no one-size-fits-all answer when it comes to addressing customer fixation on pricing, but increasing the value of your product or service is a great place to start!
Price is not always the best way to increase revenue or generate interest in your products and services! When customers ask for a discount, don’t immediately reduce the price. Instead, think of ways to add value to their investment and show them how you can provide more than your competitors.
#2. Price anchoring
Another strategy you can use to get customers to focus on something other than price is called price anchoring.
Anchoring is a cognitive bias in psychology that causes people to rely too heavily on the first piece of information they receive when making decisions. Once customers have been “anchored” by a specific price, it’s difficult for them to change their minds and consider other options.
This is why it’s important not to reveal your lowest price until later in the sales process.
For example, if your software costs $99/month, and you reveal the price upfront, customers will be anchored to that number. They may not even consider other packages that are priced higher than $99.
However, if you wait until the customer is ready to buy before revealing the price, they will be less likely to focus on the cost. This is because they have already decided that your product or service is the right choice.
As a result, they are more likely to choose a slightly higher package than if you had revealed the price earlier on in their decision-making process!
Price anchoring can be used in many situations and contexts, so don’t hesitate to experiment with it! Just remember not to reveal your lowest prices until later on in the sales process when customers have already made up their mind about buying from you instead of someone else.
#3. Offer payment plans
Payment plans allow customers to spread the cost of their purchase over time, making costs less of a burden. This is a great way to get customers who are fixated on price to feel more comfortable making a larger purchase.
For example, if someone buys a $100 product on credit, they may end up paying back $120 overtime. This means that you’ve generated an extra $20 in revenue from that one sale!
There are many different types of payment plans, so be sure to choose the one that best suits your business and your customers. You can offer installment plans, pay-over-time plans, or even subscription models.
The important thing is to make it easy for customers to purchase your products and services!
#4. Do not focus on price alone during negotiations
The next strategy is to stop focusing only on pricing when negotiating deals. It’s important to remember that customers are looking at a number of factors before making a purchase decision – even if they’re fixated on price.
These include quality, reputation, location, convenience, speed, dependability, and affordability. Sometimes just being cheaper isn’t enough to meet their needs, so don’t rely solely on this method as it may backfire in negotiation situations!
#5. Reduce prices temporarily
If all else fails, you can always reduce your prices temporarily to get customers to put price concerns aside.
However, you should only do this if you are sure that you can afford to lower your prices. Also, be sure to communicate the sale price clearly on your website or marketing materials! This will let customers know that they’re getting a good deal!
Reducing prices temporarily can be a great way to get customers who are fixated on price to learn about the quality of your products or services. This strategy will help you collect more data about what your customers are looking for to adjust your prices in the future.
You can also use this opportunity to request customer feedback and use their positive reviews as social proof when marketing your business.
#6. Change the language you use around pricing issues
Another way businesses can address this issue is by changing how they talk about prices with customers. Rather than using the word “price,” you can use words like “investment.”
While it may seem a bit strange at first, this simple change in wording is an easy way to get customers to stop fixating on price. The reason for this is that customers will be more likely to think about the value of their purchase rather than what they’re spending. Emphasize the benefits of your product or service and how it will improve their lives and benefit them in the long run, rather than focusing on the cost.
The language around prices and payments matters – so be sure to experiment with different phrasing until you find what works best for your business!
#7. Shift the focus to price comparisons
Another way to get customers to stop fixating on price is by shifting the focus to cost comparisons. Instead of talking about how much your product or service costs, talk about how it compares to other products or services in the market.
For example, if you’re selling a new product, talk about how it’s cheaper or of higher quality than similar products available online. Or, if you offer a service that’s unique and difficult to replicate, then talk about how it’s more expensive than other services but more value for the money.
#8 Create a loyalty program
A loyalty program is an effective way to keep customers coming back to your business. It rewards them for their loyalty, which in turn encourages them to continue spending money with you.
Some businesses offer a points-based system, where customers earn points for every purchase they make. These points can then be redeemed for discounts or other rewards. Other companies use a “buy nine get the tenth free” type of program, which gives customers credits when they buy nine items or more.
No matter what type of loyalty program you choose, make sure it is easy to understand and use.
Ensure the rewards are desirable and relevant to your customers. By rewarding customers for their loyalty, you’re encouraging them to keep coming back and purchasing from you again and again.
#9. Offer customization or personalization
Although this can be more time-consuming than other options, it is very effective in getting customers fixated on something else besides price. If you give them a feeling of exclusivity and make them feel like your product is tailored specifically for their needs, then they will be more likely to pay the price you’re asking.
For example, if you’re selling baked goods, then offer custom flavors or design options for customers who are willing to purchase in bulk. Or, provide a list of add-on items that people can choose from when they order their main product online – this will help personalize the experience.
Offering customization or personalization is a great way to show that you care about your customers and want to give them the best possible experience. Plus, it makes them feel special, so they are more likely to stop fixating on price.
If you can make your customers feel valued and important, they’ll be much less likely to focus on price.
Pricing strategy for price-sensitive customers
By following these tips, you can stop your customers from fixating on price and encourage them to focus on all the other great reasons to do business with you!
Price will always be a consideration for buyers, but there are ways to minimize its importance and get them to focus on other factors. Experiment with the methods listed above and find what works best for you – you may be surprised at the results!
By doing these things, you’ll find it much easier to convince your customers that there are more important aspects of your business than just the bottom line!