Cash Management Secrets

Proven cash management strategies that improve cash flow, collect past due money, and increases profits in tight credit markets.

Why You Must Have High-Ticket Options

While there are a number of folks who bargain shop, a percentage of you customers are willing and able to buy premium product. This isn't just a phenomenon of the consumer elite; many of your business-to-business customers want to buy top-end too.

Now I hear you saying, "But my business is different!" Yes, I agree, you are not taking advantage of premium priced high-ticket items to drive new business. The hard truth is that you're losing money to businesses who understand that there will always be buyers at the top end.

You just can't raise prices (actually, some businesses can, but that's for another lesson.) For you to have higher priced product that sell you need to have a clear value position.

According to an article in Us Airways Magazine, your high-ticket premium product actually drives sales of lower end items, while serving a real customer desire. That means your high priced items are more than big-ticket purchases, they are a means to promote.

Why do some people buy the high-end item and others don't? It doesn't really matter why; they just do, so offer something on the top-end. Why isn't your business the one everyone is talking about, be the talk of local and trade publications for having the highest price, most inclusive serve in your industry?

Of course, you must be able to deliver on your promise and the value for the price must be outstanding -- and there is nothing wrong with building in the margins necessary to justify providing exceptional service. What this says to your market is, "We have something, that's not for everyone, but fully demonstrates our value to those who can."

Excluding some of your customers from the premium priced high-ticket service, will help them gravitate toward the price point most comfortable to them. They understand they aren't getting everything they could, and still choose you because you gave them choice.

No matter the economy, there is always someone buying high-end, why not buy it from you?

In another lesson, I'll show you how to transform your ordinary product to premium levels that attract serious buyers. Look at the range of offers you have, what choice are you giving your customers who want to pay more.

Posted by Justin Hitt on November 28, 2006 8:40 PM | Permalink

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