People are willing to overpay for a number of reasons: safety, reliability, luxury, whatever.
What people aren’t willing to do though, is to overpay for something that they know they could get for cheaper or maybe even for free. It’s even worse when they overpay for something which their peers can get for less.
That’s probably the number one reason why some people seem to search relentlessly for the best deals that they can find: it’s not that they don’t want to spend money — it’s because that they want to earn the bragging rights of being able to find the best deals (best in this case doesn’t always mean the cheapest), or that they don’t want to appear foolish in front of their friends.
So the next time when you ask your customers to overpay, ask these questions:
– Can they find similar products elsewhere? Are they cheaper/free?
– Are we giving them enough bragging power for their purchase?
– Will we make them look stupid?
Most importantly, pay close attention to the difference between what’s true and what your customers choose to believe.
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