There are potentially dozens of conscious and unconscious factors to think about when a customer considers a purchase. Here are four of the most influential:
Ability to pay - Just because a customer can pay a specific price doesn’t mean they always will. How substantial is your price relative to what they earn as an individual or a business? If you’re expanding into a new market, you’ll need to consider if the average wealth and disposable income of your target demographic are different from your current market, then adjust your price accordingly.
Value proposition - How much will your product or service change the customer’s life? Rubber gloves might protect their hands while they clean, but a safety gate at the top of the stairs could protect their child’s life. How can you demonstrate the value your product or service can bring to your customer's lives? The more integral the product is to the things they care about, the more they’ll likely pay.
Convenience - What situation are buyers in when they make the purchase? A pocket-sized umbrella could be worth more to someone who’s emerging from a subway onto a rainy street than someone sat cosily at home browsing an online store. Identify all the ways you make the purchasing journey convenient, be it through stellar product education and clear marketing, speed and ease of delivery, after-sales support, or something else.
Comparison - What is your target customer’s “second-best option”? This is what they’re likely to compare your product or service to when making their buying decision. If you can’t differentiate your offering based on extra features, added convenience, or another value proposition, you will inevitably be compared on price alone. Comparison works in other ways too. How much does your product cost today versus last week? How much does it cost to buy three units instead of one?