Offering customers a discount may give you a quick revenue boost, but it’s not helping your company long-term. Rather than convincing your customer of the value of your product, promotional pricing reduces your value, leaving customers seeking cheaper options when prices return to normal.
Instead of discounting your services to encourage customer loyalty, price according to the value you provide. Value-based pricing (VBP) prices your products based on the value you confer above and beyond that which your competitors provide. In other words: if your customers understand that your product is better than the alternative, they’ll pay a premium for your service.
Effective implementation of value-based pricing relies on educating the customer. It takes a well-written marketing strategy to convey all your brand has to offer. Knowing your market and targeting your strategies towards your customers will help ensure your pricing appeals to your target market.
Need help getting your message out? Unsure how to transition to VBP? Schedule an informational meeting with the INT Creative team.