High-Ticket Items Appeal to Consumers
High prices are not necessarily a hindrance to more sales, according to an article in The New York Times -- in fact, high-ticket items can induce some shoppers.
“Price certainly plays into a product’s allure ... For certain people, the higher the price, the more attractive the item becomes,” Robert Burke, a retail consultant in New York says in the article.
Customers will pay a higher price, according to the article, because the high-ticket item ensures exclusivity and conveys a higher “status” to their friends.
Hank Maarse of Jacob Maarse Florists in Pasadena, Calif., caters to a higher demographic (including providing flowers for Hollywood productions) and says that not all, “but a good percentage” of his customers, are attracted to buying higher-priced items.
While Maarse is skeptical about a trend toward higher-priced items, he says that if his customers find the floral design appealing and can see the value, often they don’t even look at the cost. “For [some customers] if they like it, then price isn’t an object.”
Before you hike up prices, Susan Sokol, president of Vera Wang, says in the article, gauge how much consumers are spending for similar items at a higher-end competitor’s store. If the prices are generally higher than yours, a higher mark-up might translate to success at your store, too.
Burke cites an additional incentive for considering a more hefty mark-up: “It’s much easier to sell five of something really expensive than 20 of something less expensive.”
To read about more about the connection between high prices and consumer perception, view the E-Brief about how Tiffany recaptured its glitzy image and its greatest sales growth.
Previous Article
Next Article
|
