Nobody likes to pay more for a product or service than they need to. Each of us loves to find a good deal. But as a small business owner we must always remember that our pricing conveys a certain image about the products and services we are selling.
While consumers certainly like to think that they are getting a good deal, they also know that they get what they pay for. When you visit McDonald’s you do not expect the same hamburger that you will get at Fuddrucker’s. If you want more value, you understand that you must pay a higher price.
The same is true of your customers. If your prices were half of your competitors, consumers would be suspicious. They would wonder about the quality of your widgets. They would be concerned whether you would be in business to service their product. Your price would convey a specific image regarding the quality and stability of your business.
This is not to say that we should charge outrageous prices simply to convey quality. Our products and services must truly offer value. If we charge more, we must also offer more. And we can offer more in a variety of ways, from better quality to greater convenience, from superior service to a broader selection.
Certainly there are consumers who are more price conscious than others. And there are products and services–commodities for example–that are more price sensitive. But this doesn’t change the fact that cheap prices can convey an image of cheap quality.
