Your Customers Don’t Want to Pay Less

Price is a compelling topic among customers and producers because it’s a number. It’s easy to calculate and easy to compare. We feel the price.

But the price isn’t that important.

Every product and service is a collection of traits: convenience, quality, durability, relationships, trust, many other things, and of course, price.

In his book, Billion Dollar Brand Club, Lawrence Ingrassia writes about early direct-to-consumer companies like Dollar Shave Club, Bonobos, and Third Love. It’s notable that most of these brands were not cheaper than their competitors. Rather than pitch a product as better because it was cheaper - “we cut out the middleman” - each company offered something else.

Trusting customers are repeat customers, found Emily Weiss, founder of Glossier.

Similarly, Dollar Shave Club’s razors aren't better than the competition. They were made alongside ones sold at Aldi, the discount grocery chain. But customers liked the convenience.

Lastly, Lovepop created a foldable card which costs many multiples of traditional cards. But the business works because the collection they offer is what consumers want.

This is easier to see in others than in ourselves. Why do you choose your doctor, your hardware, and your clothing store? Why that salon? Why that technology?

Look around and you’ll see, customers don’t want to pay less.

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