Business is About Buying At Low Price (and Selling High)

No matter what kind of price you are offering to your customers, your customers are there to cut your price so that they can cut down on their expenses. This is especially true to business-to-business customers. It is never about the kind of price you are offering. If you can offer a lower price, you often win the sale. But you still have to offer the same quality product as ever. This is all about doing business over here. We have to provide a price for the right person at the right time.

Right person at the right time does not always exist to be our customers. It takes time and some probability calculation to get our customers. And also, it has to do with our way of doing business too. In the Internet business, it is all about the landing page which is doing its job to convince the right person of its price at the right time.

If a person is able to see the value of the product which is worthed so much more than the price he is paying, he will want to pay for it. This is technically true. However, it is about making the customer feel emotional about the product to buy that really switches on the buying signal. Words such as “30-day money back guarantee”, “I am giving you the best deal already”, “What are you waiting for?” and “This product is one of its class”… They really turn on a prospect to take out his wallet.

Whatever we are doing, we should never engage ourselves into price war with our competitors! We can never win this way! Instead of having price war, we can think of providing even more value to our customers who are buying our products… The value of the product which worths so much more and they could be paying more outside… And that comes with the bonus products we can give.

And while we wish to sell high, people out there are buying low… Hence, we have to play a good balance between the low and high. There are about 80% of the customers out there who are buying really low… These kind of customers may sometimes become expensive for us to maintain because of low profit margin…

Whereas the 20% of the customers who buy from us at high prices, are the ones who are really good customers right from the start. They are very willing to buy at a premium price from us… They didn’t attempt to cut into our profits… They just wish to enjoy what they have bought from us… And it turned out that they are the least hassle customers to handle!

And it turns out that the fun part is about 80/20 rule… We could be focusing our attention more towards the good 20% customers to make 80% of our profits since we are enjoying good profit margins from them…

Buy low, sell high… It is always this case… And everybody who starts a new business has to face this problem right from the start!