A woman goes into a swanky retail store or boutique, looks at a dress, and sees that the price tag is $800. She says, “My, that’s a lot of money.”
The sales associate agrees and says, “Yes, this is an expensive dress.
It’s a St. John’s Knit. There is a good reason why they charge so much for this. First of all, it is made from the finest materials, hand stitched, with beautiful buttons, collars, and lining. When you wear it, you feel as if you are one of the most expensively dressed women in America. It holds its value. It is timeless in terms of tailoring. You can wear it year after year, and it always looks great. This is why it costs $800.”
If you charge a high price, be proud of it.
When a potential buyer learns all the reasons that a particular product is as expensive as it is, her price resistance declines as her buying desire increases. That’s why countless hundreds of millions of dollars of high-fashion clothes are sold every year. It is because of the focus on value rather than price.
Always justify the price with sound reasons. Explain carefully why it costs as much as it does. Never discuss price without mentioning the value and benefits of your offering at the same time.
