Many daycare businesses think that the key reason why their customers are not signing up is because of their prices. They think that by reducing the price, they will increase the number of children signing up for their daycare. Let’s take an objective look at how prices affect our customers.
Price matters less for the following type of products:
- Rare / Hard to substitute / No comparison
- Purchased infrequently
- Essential item
- Required immediately / urgently
- Emotionally sensitive
- Unique
Price however does matter for the following type of products:
- Readily available / Easy to substitute / Easy to compare
- Purchased frequently
- Non-essential item
- Not required immediately
- Emotion free
- Common
Price does matter, that is true. But not all the time. For example. Would you expect to pay fast food prices if you are dining in a fine dining restaurant? Why is it that people are willing to fork out 10 to 100 times more just to eat when you can get it cheaper elsewhere?
The key will be to help our customers see our daycare services as unique, difficult to substitute and not available elsewhere.
