What Does the Best Price Mean to Customers?

Do you have the best price? Perhaps, but that all depends on how your customers define price and perceive your offerings. Some customers view price as the total cost of acquisition. This includes not only the monetary price to be paid, but also includes all of the value added services offered by the retailer. The brand name, brand image, support services including sales assistance, payment methods and even the packaging can all be important. The personal service offered to help the customer find the right piece of jewelry for the right reasons is very valuable to many customers. However, that service must present a differentiated jewelry offering. Otherwise, some jewelry customers will want to cross shop substitute jewelry products at lower prices. Convenience of location, store hours and reputation play a part in cost of acquisition. Of course, warranties, and guarantees and after sale services help support the customers’ view of cost of acquisition. Selling the services provided by the jewelry company requires professional sales associates and refined sales presentations that effectively differentiate the company’s offerings.

Price buyers try to eliminate the consideration of value added services and value of branding, etc. and try to buy jewelry at commodity pricing. Undifferentiated jewelry offerings can often be perceived as undervalued and overpriced by shoppers. Price oriented buyers are quick to attempt to discount value added services. Most retail jewelry store business models are based on providing and being paid for value added services. The best price to price-oriented buyers is too often made by accepting substitute jewelry offered with a lower price. Price shoppers proclaim that “they will be back” only to leave to shop price for similar offerings.  Consider how often “be back” shoppers do not accept the price because they don’t understand or accept the value added by the store.

The best price for retail jewelers supports their ability to provide value added services that help differentiate their offerings and delivery more margin. The best price for jewelry shoppers is arrived at based on the customer’s perceived value of the jewelry including the added value services offered by the company that enhance the deal. During these busy holiday times it is too easy to short change the presentation of value added services offered to customers. It is important that buyers understand why the price of the jewelry is the best price because of all the value added services that the company provides customers. The best price need not be the lowest price, but it must be the offering that is perceived to deliver the most value to the customer.