Being at the premium end is a category upon itself. Describe the indicators of premiumness or high quality and high price that can apply to most types of products

Answer 1

Indicators of "premiumness" will vary greatly depending on the product. The old adage "you get what you pay for" is generally true. Therefore, you have to justify charging a higher price by making your product worth the higher price. Following are several determinants of quality and the ability to charge a higher price:

1.) Image: What are the demographics of the users of the product, e.g. income, age, occupation, education level, place/location of residence, etc. Users of your product will want to people to believe that they are part of an "elite" group of users of your products. They will be looking for sophistication, class, elegance professionalism, worldliness, higher income and education;

2.) Service and repair, length of warranty/guarantee, and return/exchange/replacement policies. The higher the price of your product, the more liberal/generous your customers will expect these policies to be. The customer has to be and stay satisfied for the entire time they use/own your product and want to return to buy more of your product. Your policies in these areas will be critical to achieving that goal.

3.) Stay in constant touch/contact with your customer well after the purchase. You will want to keep your name in front of the customer at predetermined intervals. You want them to keep you in mind without overwhelming them. Too much contact can be perceived as intrusive. This can include mailings, e-mails, promotions, coupons, notifications of sales, discounts, meetings, conferences, seminars, or just a phone call to say hello once in a while.

4.) Show off the quality of your product in every way possible. Make it look and feel like it's worth the higher price. It should look and feel clean, sturdy, shiny, durable, solid, heavier duty, luxurious, expensive, international, worldly, sophisticated, and contain the highest quality components and materials, etc.

5.) Make sure that your sales and service personnel are of the highest possible caliber and pay them accordingly. Your higher-paying customers will expect your sales and service personnel to be totally knowledgeable about your product and service policies and, equally as important, look, act, and speak as if they do. They will have to be the epitome of professionalism, courtesy, helpfulness, and politeness and always have a smile on their faces and/or in their voices.

6.) The price(s) of your product have to be at least as high as your competitors'. Your high-end customers will expect (and want) to pay a higher price for a premium product so that the people around them will know that they can afford it. Your pricing strategy might have to the exact inverse of the pricing strategies of lower-end products, i.e. instead of undercutting or discounting your competitors' prices, you will have to "outprice" them, e.g. a Mercedes dealer has no interest in charging lower prices than a Chevy or Ford dealer.

7.) The presentation of your product will have to look as if it's worth the higher price, e.g. the appearance of your stores or sales facilities, the packaging of the product, and the amenities surrounding it, e.g. plush couches, free food and beverages or samples, easy-listening or classical music, etc.

8.) Your advertising, no matter what media you use will have to reflect all of the above. A knowledgeable advertising agency or consultant familiar with marketing higher-end products will be an invaluable resource.

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