Topics: Public Relations Branding And Positioning

What it Takes to Get a Premium Price for Your Services

Picture of Chris Heiler Author: Chris Heiler

Are you familiar with the television show Ace of Cakes on Food Network? The popular show features Duff Goldman, founder of Charm City Cakes, and his quirky band of cake crusaders in Baltimore.

A single cake from Charm City Cakes sells for a minimum of $1,000. Even with this premium price tag they are already booking events into 2012.

As Charm City Cakes has proved, consumers are quite willing to pay a premium price for goods and services.

Buying decisions are not always based on cost or the perceived quality of a product or service.

That should be good news to those of us in the Green Industry.

There are three instances in particular when a consumer will happily pay a premium price.

 

Have it your way

The era of customization is upon us.


You know this is true when you can get personalized M&M's to complement your Charm City Cake on your special day.

Sticking with our television theme, the Teutul family and Orange County Choppers creates one-of-a-kind motorcycles while Patti Stanger from The Millionaire Matchmaker will customize your search for the perfect mate.

Okay, so you might not be interested in a custom chopper or a new mate. How about some new glasses instead? Eyeglass designer Tom Davies custom-designed 36,000 eyeglass frames in 2009--at about $600 each!

Consumers today are more savvy and have higher expectations. They want customized products, services and experiences uniquely tailored to their tastes and lifestyles.

And their willing to pay for it (probably with a personalized Capital One credit card with a photo of the family pet).

Greg Winchel of Winchel Irrigation in Grand Rapids, Michigan offers a customized, weather-based irrigation service for his clients. No two watering schedules are alike. Schedules are customized based on soil types, plant types, micro climates on site and current weather conditions. The ultra-high end systems are controlled by computers and satellites.

Greg's clients pay a premium price to be treated uniquely.

Do you offer your customers customization?

 

Purchases with a purpose

When I'm ready to purchase a new pair of eye glasses in another five years, I plan on buying them from a small company in Portland, Oregon called 141 Eyewear (sorry Tom Davies).

I won't let the premium price deter me. I'm not just buying a pair of glasses, I'm supporting the purposebehind the company. For every pair of 141 Eyewear purchased, the company gives a new pair of prescription glasses to a person in need who cannot afford them.


Like many of you, I prefer to buy my produce from my local farmer's market at a premium price largely to support local growers.

Consumers will put their money behind a company motivated by a purpose that goes beyond their bottom line.

Nau (pronounced "now"), also headquartered in Portland, is my favorite clothing retailer. Nau makes "green" apparel. All aspects of their business--from the product to the business model--are built with sustainability at their core.

Nau goes a step further by donating two percent of their premium price to one of their Partners for Change, of whom the customer can personally choose. By doing this, Nau allows their customers to become active in their mission and purpose. "Sustainabilty" is more than just a word on a clothing tag.

Green Industry companies should take note. With more and more companies preaching sustainability and "green design", landscape industry companies have an opportunity to attract customers who will pay a premium price if backed by a purpose and mission at their core. These companies need to live and breath their purpose like Nau and 141 Eyewear.

What's your company's purpose?

 

Making lives easier

Smart phones carry a hefty price tag along with a high monthly fee. How do users justify the premium price? One word: convenience.

Who wants to tote around a phone, camera, iPod, camcorder and laptop when you can just carry an iPhone?

Lifestyles have changed. People are busier. Consumers will pay a premium price for a product or service that makes their lives easier.

One reason my clients hire my landscape design firm and willingly pay a premium price is because of the high level of convenience I offer.

A majority of my clients are corporate executives with very little time. Being able to place their trust and confidence in one person to see a project through from initial design to construction is extremely valuable to them. Dealing with a single individual is convenient.

Do you make it easy for your customers to do business with you?


As you can see, consumers are more than happy and willing to pay premium prices--but you have to give them a good reason. Consider customization, purpose and convenience when developing your company's unique qualities.

Picture of Chris Heiler

About Chris Heiler

Chris is the founder and CEO of Landscape Leadership. He has been in the green industry for over 20 years. Aside from leading the team at Landscape Leadership he enjoys speaking at green industry events across the country sharing his insights on marketing and sales. Chris now lives in Austin, TX, a transplant from the midwest and the great state of Michigan.

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