Interviews and insights to help tourism businesses become remarkable.

Pricing is positioning.

Picture yourself standing in front of a garage. There are two roller doors.

Absolutely nothing sets the roller doors apart. They are precisely the same.

Except, this. I tell you that behind the door on the left, is a car which costs $90K. On the right, a car which costs $50K.

You get a choice. Choose the door on the left, and you get what is behind it. Choose the door on the right, likewise. You don’t get to sell it, either. It’s just yours to keep.

With no other information, which do you choose?

You choose the more expensive, right? Anyone would. Unless you’re deliberately a contrarian, that is.

What is better, however? More useful? A better fit for you or your family?

You assume that more expensive means it will be better. But you don’t know that.

The same things happen when a customer is assessing what you offer.

If you are cheap, people assume there is a reason for it.

If you are less *cheap* (more expensive), people assume there is *good* reason for it.

So long as you present well in other areas – you communicate well, your reviews are strong, and the images look good – you will successfully command a price premium.

Your job then, is of course, to deliver the expectation of that price premium, and so the cycle will continue.

The takeaway?

If you are less expensive than the competition, it may not be doing what you think it is.

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