BIG offerings for a budget price
Are you one of the many business owners who say “I can’t put my prices up, people just won’t pay anymore”? I am about to give you my 2 cents, or 2 minutes worth actually.
I hear a lot of people justify why they need to keep their prices super low, why they have to struggle with low profits and crappy incomes due to price.
Recently I took a trip to Thailand. My sister and I travelled on a budget airline. The prices for a QANTAS ticket were 40% higher so we took the cheap option to ensure maximum cash in the margartita budget. As I was sitting on that cheap flight I was thinking about how much my butt hurt. I was sardine packed in with 100’s of other budget seeking travellers. There were no free snacks, no inflight entertainment, not even a pillow to rest my bored out of my mind head. All I could think is I am not built for budget.
There will always be people who prefer an economy no frills service and there is nothing wrong with that. Then there will be people who are looking for something a little more regardless of the extra cost. I will happily pay for comfort, I will happily pay for service.
Regardless of the industry you are in there will be people happy to go budget and people happy to spend more for the extras. You can choose to be budget, mid range or high end. If you choose to be a budget business then you must ensure you are giving budget service or your profits will suffer. I know how much people hate hearing that. We are all taught as business owners to give the best service and the highest quality but that means for the price point you are offering. If you are a budget service you just can not afford to give mid or high range extra’s.
I of course suggest to head to the high end of the market. Get your product or service right, get your marketing right, get your confidence up and you can be working with customers that don’t care nearly as much about price as they do about the extras – like complimentary inflight snacks and those little bottles of booze.
Are you offering a high end product and or service to the budget loving crowd?
Want Two Minute Tuesday delivered straight to your inbox? Click here to join Profit Lovers!