Smarter Pricing: How to capture more value in your market

11. Why pay more? How to get higher prices

Now let us consider the challenging question, posed by competitors offering lower prices, ‘Why pay more?’ Customers need a reason and smarter pricing can provide it.

There are nine communication tactics to convey superior benefits – some tangible, some emotional. All are designed to increase customers’ willingness to pay.

1. Genuinely better product, clearly communicated

   Customers will pay more for quality when the product superiority is made visible and evident. Openness matters and dramatic communications can draw attention to the better product.

   Heinz changed the recipe of its cream of tomato soup in 2004. Originally launched in 1910, it was selling at a rate of 500,000 tins per week. Every day Heinz ...