A Lesson in Premium Pricing

Convenience stores are thus named for a reason. They are convenient. You don’t have to search for a parking spot a hundred yards away, or walk five minutes to get milk from the back left corner of the store, or stand in long lines to pay. You get in, get out, and are on your way.

However, this convenience comes at a premium. Expect to pay 10%-12% more on average for fewer choices and smaller quantities. The convenience store model charges for how much time they save you. They do not confuse volume with value.

For almost all other business models (maybe like yours), there’s a tendency to closely correlate volume with value. It’s easy to think that long meetings, endless PowerPoint decks, and time-consuming research and discovery periods demand higher fees.

“People don’t want to talk about their problems. They want their problems solved. Help them get there quickly.”

But, what if you looked at it the other way? What if quicker meetings, shorter decks, just the right amount of research, and the fastest possible path to solving your client’s problems is what justifies a higher fee? People don’t want to talk about their problems. They want their problems solved. Help them get there quickly.

Training and Certification companies are beginning to figure this out. It used to be that in-person, long and extended training sessions cost more than the virtual, shorter version. Now, at a minimum, the cost is the same for virtual or live training. Companies are experimenting with charging higher prices for the convenience of virtual courses.The end result is the same, with participants receiving quality training or certification, just in less time and with less hassle. And, many are willing to pay the same amount, if not more, for the convenience.

So, apply this principle to your business. Don’t be afraid to charge a premium for convenience. People will be glad to pay more if you can get them from where they are now to where they want to be… and quickly!