Price is a major factor for pushing people towards eCommerce. This is the reason why luxury items have still not gone mainstream, when it comes to eCommerce. However there are some tips and tricks used by eCommerce stores dealing in luxury items that can entice consumers into buying expensive products.
People often pay premium to have their problems solved
There is a known fact that consumer can pay a premium if you are able to solve their biggest problems. This even includes consumers who are often reluctant to spend an extra money on essential items. The job of the sellers is to just find what is the most crucial problem faced by consumers and plug it while selling the items.
For example – an online real estate marketplace can offer virtual viewing of the houses/apartments to the consumers, diminishing the need to visit the site personally. This way rather than spending a whole weekend looking at half a dozen apartments, consumers can do the same via online real estate marketplace in a matter of hours.
Offer additional services along with the product
When it comes to expensive products, it is the additional services offered by a brand that induces people to make a purchase. For example – online automobile marketplace can offer additional warranty or an year of free car care service along with the car to make the offering sound lucrative.
Exclusivity always turns the tide in your favor
When a product is only available in a given place, consumers will not have any option other than buying it from there. A lot of manufacturers are nowadays introducing online only products. This is helpful for brands as online only approach involves less marketing expenses as compared to offline counterpart.
Position Your Prices
Position your products correctly. If you want to make your valuable, high-end product seem more attainable, add a similar more expensive product. If you sell information products it’s relatively easy to create a new, higher priced product. If your business sells physical products, it is time to consider selling a more expensive brand in your store.
If you want your sedan to look big, put a hatchback right next to it. If you want your sedan to look small, pitch it against an Jeep. This is a universal strategy used by several brands and businesses. In order to make an expensive product look like a steal, brands often introduce a more expensive offering, that makes the former product look like a sweet deal.
Offer option to buy with installments
This is one of the critical tips for enticing customers into buying expensive items. Often it has been found that there are consumers who want to buy a particular item, but shortage of funds hinders the purchase. One way of enticing such customers is to offer them option to buy a product with installments. This is a common strategy used by brands to entice consumers.
Eliminate poor-quality competitors
Let’s say you’re in an RFP process with two other vendors. Vendor A is a low-cost, low-quality product. You rarely lose deals to Vendor A. On the other hand, Vendor B is a competitor you bump up with quite frequently, and have lost deals to in the past. In a three-way heat, you want to help your buyer eliminate one option as quickly as possible. Which would you eliminate? Most reps would say Vendor B because they have a greater likelihood of winning against Vendor A.
But this is actually the wrong answer, we would rather stand with Vendor B. Why? Because you then put yourself in what buyers consider the pool of quality. If you can convince your customer to get rid of poor quality options early on, you’ll find you strengthen your sales argument later in the process and you won’t be faced with struggling to match crazy low prices.