Sean D'Souza: Show why it's a top product and they'll pay

Would a customer buy a product just to brag?

Would they pay more just to say: "I paid more"?

What if it wasn't something spiffy like a diamond you sold? What if you sold a bed, or teacups, or tiles? Or a training course?

In any business, the price can be quite touchy. It doesn't seem to make sense that higher prices would sell a product or service better. So most of us adopt a low price strategy.

But some businesses aren't necessarily low priced. For example, Christie's, New York. People go in expecting to pay a higher price than the product was bought for earlier. This is because the product is rarely being bought for utility value. It's being bought for snob appeal.

So let's say I'm selling a bed. And you walk into the bed store. You have some idea what a bed would cost, and you have a budget. And I say: "Would you like to buy the $1000 bed or the $5000 bed?" Now the shock is palpable to you as a customer. What? $5000 for a bed?

Amazingly, the question changes. You now say: "What does the $5000 bed have?" Now I have permission to describe what makes a bed $5000 versus $1000. The value isn't snob appeal at all. There's a marked difference.

So do customers buy the $5000 bed?

In some cases, yes. In most cases they go to $3000 or so. But how many go to the $1000? Almost no one. Why would you purposely buy the "crappiest" option?

Of course a lot depends on your sales pitch. If you educate the customer then it works to mutual advantage. If you simply "sell, sell, sell" it won't work, because the customer senses the sales pitch. And this isn't restricted to beds.

We have a training course in article writing, for instance. I positioned it as the "most expensive article-writing course" in the world. Many clients who do the course are small business owners. They have limited resources, and snob appeal doesn't quite, um, appeal.

And yet the expensive option gets attention, just like the bed did. The question changes from: "Show me what you have to offer" to "Why is your course the most expensive in the world?"

That gives you the permission to respond. Responding is what's important. You can't do a sales pitch. You have to educate me. You have to tell me why I should buy this versus that.

With the right steps, the client will follow you through the sales sequence as you demonstrate what makes a better bed, or a better fireplace, or a better course. But again, let's not forget. You're not selling the product/service. You're describing what's outstanding, what's just okay, and what's totally crappy. This sequence of education is helping the customer to decide.

Try this technique face to face with a potential customer. But don't make the mistake of trying to sell the product. Instead, educate yourself in great detail about your premium products, your mid range product and the cheapest, crappiest product of all.

Tell the customer what makes the product/service better and what makes it worse. In effect, you're playing devil's advocate with your own products/services. Playing one against the other, while educating the customer.

Look at how Apple sells products. Why have a lower-priced iPad? Is it to capture the lower end of the market? Sure, there's some of that involved, but think about it.

Which model of the iPad do you want? The lower priced one or the more expensive one? Notice how much trouble Apple goes to to explain almost insignificant features of the product in amazing detail. It's done for a reason. It educates you and makes you want the product even more.

You may not be Apple, but that doesn't mean you can't aspire to understand and replay its powerful marketing tactics and pricing strategies.

Customers say they buy on price. But they rarely buy on price alone. There are so many other factors.

One is sheer excellence of the product. The other is understanding what makes the product superior. And of course, there's snob appeal.

If you're selling to an audience that understands excellence and snob appeal, start with the top price. It gives your customer the best possible product. It also gives him or her bragging rights.

PS: Is our article-writing course the most expensive in the world? We certainly think so. And you'll know why when you see the results and the testimonials. And nope, it's definitely not snob appeal.

Sean D'Souza is chief executive of Psychotactics and an international author and trainer. He is the author of The Brain Audit - Why Customers Buy (And Why They Don't).

www.psychotactics.com