price

By Kevin D. Johnson, Jr.

Premium Expectations

Premium pricing is very attractive to various small businesses, entrepreneurs, and “Big Businesses.” Largely due to its revenue generating ability. However, that is just one side of the reality. High price points bring on high expectations. People are less forgiving of mistakes and unfavorable customer services when paying luxury prices.

There must be a constancy across the board. Luxury prices warrant luxury services. Too often the high margins are remembered but the companies high end service falls short. This doesn’t mean that there is merely an armed guard at the entrance of a store. The moment the client and or potential client makes contact with a brand, service, company etc. they should feel great about the money they are spending or will possibly payout.

Unfortunately people are more likely to share an unpleasant experiences vs a great one. The last thing a company or service provider wants is to be a part of a sentence that states “I paid all of this money for xyz and…….. “ Quality service and product can help a great deal with the customer’s experience. However, things will go wrong from time to time. Just make sure that there is a system in place to rectify the situation. As long as customers or clients feel like they are being taking care of, a negative situation can go to a positive one. Make sure that the service or product constantly stays at the level of the asking price. It’s not enough for a restaurant as an example to get new furniture and remodel but have lower level customers service and or subpar food. There must be a luxury experience coupled with the high-end price.

Premium Experiences

High-end prices must warrant their worth. This can be done via quality and or creative packaging, premium materials/fabrics, attention to detail, and taking as much work or worry away from a client as possible. However, the store or office’s layout must correlate with the upper echelon asking price. This also goes for marketing materials such as logo, graphics, websites, images, video content etc. One never knows what channel the next potential client or customer might come through. Thus, structuring the company so that all areas of entry are high-end is paramount. Once they have entered, the expectations set at the entirety point must be met. If a suit and tie image is projected on a website, the employee’s attire must match in-person. Any pleasant custom differentiators are also of a great assistance. Such as providing high-end water or a classy presentation of snacks or beverages.

Names can also play a big part in a company’s luxury presentation. This should be taken in to account when creating names for packages, services, titles for employees’ etc. For example working a word such as concierge into the company’s vernacular elevates the ways in which the business is perceived.  However, the names must fit the service and branding. It must all make sense from a marketing consistency perspective.

Premium Conclusion

High-end consistency is vital in order to command a premium price tag that warranties happy customers and returning business. Understand that the door swings both ways. Make sure that the service and or product is on par with the price tag. If not it will be a great challenge to keep customers/clients that are willing to pay the asking price. It’s true that higher-end services and products can have a great impact on a company’s revenue however, the one-sided approach is not the best business strategy.

Kevin D. Johnson, Jr. is the founder and CEO of NorthStarr Media Group; he is an educator, as well as the creator of NorthStarr Classic Apparel. Follow at @northstarrmedia.

Premium pricing stock photo by Syda Productions/Shutterstock