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The 3 Inviolate Rules For Selling At Premium Prices

If you're looking for ways to make sure your team is selling at premium prices, share these principles with them ASAP. They’re simple, easy-to-remember reminders - as well as food for thought - so take a quick peek then share them with your team.

Rule #1 For Selling At Premium Prices:
*The Rule of Credibility*

Rule #1 is the rule of credibility. Your prospect has got to totally, absolutely, without question believe you. And that prospect has got to believe that you believe that you’re going to get that price. They have to trust you in all things.

Studying a group of jewelers selling extremely expensive jewelry (we're not talking five or six figure jewelry… we’re talking seven, eight figures), one of the things that was found is that the jeweler who can sell the expensive stuff just drips with credibility. It’s just oozing out of their pores.

Imagine this:

Someone comes in to buy an $8,000.00 Rolex watch. She asks the price. What do you say? "I don't suppose you would want to pay $8,000.00 for it, would you?" That would be nuts.

What you say is: "The price is $8,000.00." Then you tell her how wonderful it is. You talk about aesthetic value. You talk about beauty, design, style, color, harmony and balance.

The way you state your price, coupled with the fact that it’s higher than your competitors, will immediately indicate that you’re credible and confident that your price is justified.

This leads me to Rule #2.

Rule #2 For Selling At Premium Prices:
*Don’t Personally Feel Your Price Is Too High*

The second inviolate rule has to do with how you personally feel about your price. Put simply – you can’t feel your price is high. If you feel your price is high, you’re going to do what? You’re going to somehow indicate to your prospect you feel that way... even if you don’t realize you're doing it!

We recently conducted some research to get some insight into how salespeople feel about the quality and value of their product offerings. The results are startling.

Fact: Only 33% of salespeople have absolute confidence in the value of their offerings.

If you sincerely feel your price is too high, one suggestion is that you go somewhere else and sell something else than what you’re selling. Unfortunately, many salespeople really do feel their prices are high. Ask yourself: "How do I feel about my prices?"

This leads me to Rule #3.

Rule #3 For Selling At Premium Prices:
*Don’t Feel Your Customer Is Stupid For Paying The Kind of Money You’re Charging*

Rule #3 for selling at premium prices deals with how you feel about your customer when selling at premium prices. Put simply, don’t feel your customer is stupid. For example, who’d pay a half a million dollars for a fountain pen? A flaming idiot. Bad answer.

Do you want to know who would pay half a million dollars for a fountain pen? Somebody who has a spare half a million lying around and doesn't mind spending it on a fountain pen to give as a gift to somebody, that's who. And most people who have that kind of disposable money probably didn’t get it by being fools.

The people and businesses that are willing to pay premium prices aren't stupid.

Whether we are talking about a B2C or a B2B environment, always remember that anyone who’s paying a premium price almost assuredly knows they’re paying a premium price. As a consequence, they have a different set of expectations because of that, and you must not frustrate those expectations.

A point I’ll make a point associated with Rule #3. If you want to sell at a premium price, you cannot have a delivery problem relative to your product or service. And, the cheap guy’s delivery mistakes are every bit as problematic as the expensive guy’s ones.

Your customer doesn't want to hear about: "One of my guys didn’t come in this morning. And another guy forgot to put fuel in the truck, and I’ve got to go out on the interstate and pick him up so we are going to be a little late getting there with your stuff.” They don’t want to hear about that. Do you know what they want to hear: "You need it when? No problem."

Inviolate Rule #3: your customer knows they’re paying a premium price.

Because of that, they have a different set of expectations and you must not ever frustrate those expectations.

Today's post, The 3 Inviolate Rules For Selling At Premium Prices, was derived from the wildly popular book "How To Sell At Prices Higher Than Your Competitors" by Lawrence Steinmetz and Bill Brooks. The content in this post has been updated and refined, but this material is time-honored and research-based. Because so many people in our community are battling with price-cutting competitors, I'll be sharing more of this material on a regular basis.

 

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