Affordability – differs from person to person. It is actually connected to the need and importance attached to the demand. Many a times the fact remains unknown that it is also connected to the importance that is attached to that particular demand. Not just that, it also has significance to the value you create for a product.
Most of the time the value created around a product in terms of marketing and brand value leverages the product from being a luxury to a necessity and people do not think twice before buying it. Another major concern or rather the main attribute affecting the decision is costing. Cost influences the decision in a major way.
Another great strategy to ensure the premium nature of your product is to retain a good cost and yet make it seem affordable. The best way to do this is installments or EMI pricing wherein the consumer can pay off the giant cost in easy small parts at regular intervals; mostly this is in monthly installments. This would help you in sales and also retain the costs incurred, but installments might not serve good for all products/services. This would hold well only if the price of the product/service is quite high and can be broken down. If the installment is on for products/services of lesser value the interest costs will accumulate resulting in a greater lost for you. For instance if the worth of your product is $50 and the buyer is asking for a credit or installment on this amount, this actually shows the purchasing power of the customer. Such customers are liabilities to any business and are best if not added to the list at all.
Another great offer coming up these days is the $1 offer. In this offer the user swipes his/her card for $1 to avail the product /service. This is mostly done in case of services that are recurring in nature. Once the company captures the credit card information then recurring payments are deducted automatically until the user cancels such subscription. This is done for several services these days. This makes the user use the service, experience it, and then take a decision in continuing the same. This works more or less like a sampling activity herein a free sample is provided to the user – the free sample of your service.
Today the user is provided with a lot of options to choose from a wide array of products and services. Options are endless and the provisions of payment are many. In case you are a service provider, whatever category you may belong to, the best way to proclaim your existence is to get the user to have a taste of your services and then lure them to your customer base .Ensure the customer gets the best services during trial periods and compel them to avail it forever.
By sticking on to the age old options of payment, you are actually giving a larger share of the sales pie to your competitor.