In a television show aired during the weekend, a successful businessman was interviewed. One question was what business tip can he give to people who want to venture into business so that they will be able to succeed. And one of the answers he gave was sell expensive products.
The interviewed businessman stated this one answer of his in a tone and manner that seems to aim to trick viewers and listeners especially those who are business-minded. But he meant well and there is logic to it. While it is logical to choose products which cost less, there are also good reasons to prefer their expensive counterparts.
The expensive products the businessman was referring to are those which are priced this way so because of their quality. In the specific situation of the interviewed entrepreneur, he sells pastries. And I agree with him. We can observe that higher priced food products are often more delicious than cheaper ones. At the same time, the latter usually tastes less satisfactorily or not at all.
For food products, better ingredients and better shelving procedures mean higher production and operating costs. It will follow that they will be priced higher. But the end products tastes better.
The case of expensive products are not applicable to food alone. Generally, higher priced products are better than their cheaper counterparts. They are more durable, last longer and stays new-looking longer. These high quality products are good investments consumers make. The wise and conscientious buying public want to get the most of their money and they know that it can also mean choosing the higher priced products because of their high quality. People are intelligent enough to know that it is better to wait a little bit longer for their savings to grow so that they can buy that high definition video-audio set or enjoy those great tasting food.
Some people regard expensive products as status symbol. This may be bad for others. But it only becomes so when used the wrong way. It can be put in a simple way. In the phrase “status symbol,” status comes first then symbol follows. This should be the case. People should only get the symbol if they really already have the status. It becomes wrong when the process is reversed. This is what many people do nowadays. They get the symbol first before the status.
Why Sell Expensive Products
The businessman who was in the interview said that he needed to fill the gondolas of his stores with the higher priced food products because they are the more delicious ones. He said that if he will provide cheaper but less delicious or not really palatable pastries to his customers, they will no longer come back and buy again. That is customer satisfaction. Non-food products, like appliances for example, are more satisfactory if they are more durable and provide better entertainment experience and these are usually the ones which comes with the higher prices. You can find out more about this in business essays.
The entrepreneur in the interview needed to choose the higher priced higher quality food products. His market is the middle to upper class bracket of the society and economy. These are the consumers who frequent his stores. But his market expands during holidays like Christmas, New Year, Valentine’s and school vacations when even those in lower bracket of the society buy the food products for their get-togethers or as gifts to give away.
For businesses that sell non-food products, the higher priced brands have their own market, specifically the upper socio-economic brackets. Still, there is a market for these products in the lower income group because many know the good investment they will make if they wait a little bit longer for their funds to grow so that they can buy these higher quality products.
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About Kimberly Euler
Kimberly Euler is an active content contributor across the growing online community. She blogs in her free time, while regularly manages her own small handicraft enterprise. Follow Kimberly on Twitter, Google: +Kimberly