Beware of Being the “Affordable" Choice

When pricing your product it can be really tempting to position yourself as the low-cost alternative in the market. After all the thinking goes, if your product’s price is more affordable this will drive traffic and even though you’re making less per item, you’ll be able to make up the difference on the volume sold. It’s a popular tact taken by many businesses mostly because it’s simple and straightforward and, you don’t need a lot of marketing “know how” to pull it off.

However, the truth is it can also be a dangerous game to play.

Here’s why:

Targeting price-conscious consumers is risky.  Their primary motivation is price. As a result, they’re not likely to become attached to your brand. Nor will they ever understand or care about your product’s real value. Expect this type of buyer to jump ship the moment a competitor offers a lower price. (And as we all know, there’s always someone out there willing to offer a lower price.)

Here’s one more thing to consider. Marketing on price doesn’t really tell your customer anything unique or memorable about your product other than, it’s inexpensive. At the same time focusing on being the “cheap” option can give prospects the impression that “cheap” implies “not so good.” – Which is probably NOT the message you want to send.

So remember, when pricing a product, beware of being the “bargain” option, it just might land you, quite literally, in the basement.

(rim shot.)

This much I know.

-Jeanine 

 

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