Someone buying a bottle of wine from the supermarket will pay 10$ for it. If they go to a restaurant they will pay for the same bottle 30$. Still, I never heard someone complain about the price of the wine bottles in restaurants.
While in the example above people will pay more for a product due to a combination of factors, there are situations when people will pay more for a single element. That is the key to success some companies find and exploit.
This is what you should be searching for, and when you do find it, exploit it to the maximum, but don’t stop. Search for others things to add, find the perfect mix to take you to the top.
People will pay extra for:
- Better services – staff with a smile on their faces, a friendly greeting, staff using their first name
- Quality – the better the product product is, the more people will be willing to pay
- Fast delivery – people want it now
- Scarcity – the harder it is to find and the less they are, the better. If you are the only one who can offer something that people need, you struck gold
- Proximity – people are lazy. If you bring it to their backyard it’s perfect
- Natural – if it’s bio, no additives, ecological, resources friendly
- Custom made items – people love to have something made especially for them
These are just a few examples. You can use these or find a lot more. It’s up to you how hard you are willing to search and invest in order to make people more satisfied and pay more.
Fighting a battle for the cheapest product is just a race to the bottom.