How to sell at higher price points

What if you could sell the same product, the same service or the same thing-a-majig for more money? I'll demonstrate how Head&Shoulders, Cross Pens and Listerine did it ... and how you can too.


First off, it sounds nuts to sell the exact same thing for more cash. Suspend your disbelief for a moment. It is possible. Take a look at these pens to expand your mind:

[One pen sells for nearly 100x more than the other. And yet people buy them. Heck I bought them. And there are many more crazy people like me who will buy your higher priced goods if you price them so.]






By resetting the buying criteria (the reason why people buy), cross pens and many other pen companies can sell at higher prices. You see, they focus on the improved image, the sex appeal, the increased status, the emotional benefit to tip the value scale and therefore make a 100x more money on each sale.


Warning: You can't just simply increase price and expect people to buy. Yes people buy high priced goods. But to just mark up your goods is no way to go either, because the market has already made up it's mind.


Consumer logic: 'Hey if he sells this thing for X already, why is it XXX now? It's too much. I know it sells for roughly X. I think I'm being ripped off.'


Tip: If you already have a product at a certain price point you can't arbitrarily change it, but you can sell extra bonuses and complementary packages to increase your average unit of sale. [In case of the pen, the ink refills would be a logical add on sale]


Tip2: A new product can start off with an aggressive high pricing strategy and then you can reduce it later, but you can't do the opposite (starting low and then going high is a no-no)
Back to the story and the crux - how is it possible for some companies to sell the same thing for so much more? There are 3 ways:

• They emphasize emotional appeal that tugs the heartstrings (thereby launching the consumer into a buying frenzy where logic does not exists)
• They do a more complete selling job (See how good you look with that pen Mr. Smit)
• They have a very compact and crystal clear competitive edge

By having a competitive edge the consumer can clearly differentiate between products and their price points. Thereby selling at higher prices. 

[A quick note: Selling at higher prices means you'll need fewer sales staff, less order takers, less petrol, fewer employees, less wear and tear on vehicles, lower inventory and ultimately a lesser overhead. Plus you'll only need half the distribution to match the income of your competitors. Pretty slick huh?]

Now, compare these:

The shampoo itself? Hard to differentiate. It's all very much alike. Oh wait, here's what Head&Shoulders say that the others don't:

"Cures 9 out of 10 dandruff cases, as we are the most preferred by dermatologists"  

This little buying edge, promoted over & over & over again is what allow them to sell at nearly double the price of their nearest competitors. [I believe all the above brands sell a great product, but in the eyes and wallets of the consumer - the one that gets rid of dandruff is worth double.]

Here's another great unique selling proposition: "There's no deeper clean, than Listerine"

Price tag? R71.99 for 500ml. Compare this with:

Price = R36.99 for 500ml.

Competitive advantage for this particular mouthwash? I have no idea. That's probably the reason why it sells for much less than Listerine.

The lesson: Come up with unique buying advantages (what's in it for the consumer/client) to allow you to sell at higher prices more often.