Does a Price tag prove what the benefits are of what is being sold?

Definite maybe (doubtful).

Then why is price so important?

The term “Price” is sometimes interchanged with the word “Cost”, which seems to be an uglier way of describing what one is looking to pay in exchange for what they think they need/want.

The former tells the the buyer, this is the price  of what you want to buy.

The latter tells the buyer this is what it is going to cost you.

But, in all actuality it should never really be about price!

Price should always be secondary.

If a consumer walks into a store to buy a cell phone.

The clerk would be wise to find out what they want to accomplish with a cell phone, before spewing reels of details of which one is which, and the infinite options that ensue.

If the customer is looking for a spare phone for their 16 year old daughter in case of emergency, then a $500 iPhone is not the way way to go, and $500 is not worth what it will be used for.

A regular non-smart phone is fine, often free on a plan, or $100 if sold by itself.

If the consumer needs a phone to conduct business while out of the office, then they would want to consider a smart phone.

The clerk’s job is to determine what the need is (the problem that needs solving / the pain that needs healing), what is the customer looking to accomplish.

So, a business person is looking for a smart phone, for emails and internet capability. Welcome to the following selections, Blackberry, iPhone, Android, etc . . .price points and plans.

Only by narrowing down and isolating what is important for the customer – can an environment of potential fulfillment be created.

When the clerk learns that the customer is hook line and sinker on MAC products, the choice becomes plain, and a $500 iPhone is a no brainer.

The same $500 iPhone, to one person is not worth it, yet to another price is secondary and will gladly pay full price.

TIP – It’s about raising awareness,  and creating demand.