6 Variables That Define A Premium Product

Premium products are defined as products that cost 20% more than the average category price.

Here are six non-traditional variables that define a premium product:

  • A premium marketing strategy
  • Dynamic Branding
  • Superior Customer service
  • Innovative Advertising
  • Easy to navigate website
  • The voice & message answering your business phone
  • High-Quality Ingredients

Specialty food products are often viewed by consumers as having higher quality. We are often asking, however, “Who’s the premium consumer?”

Clearly premium products and premium consumers go hand-in-hand. Right?

Did you know”80% of Americans bought premium foods in the past three months, even if it was one item?” This is the case according to an article by Laurie Demeritt, of SmartBrief. Consumers seeking premium food products are waiting for the best products available.

Premium Is Not All About Price or Is It?

One of the hardest things in business is to work out what price to charge for your product or service. This becomes even more of a headache if you’re selling a premium product.

First, one of the major hurdles you will need to jump over is getting your pricing right.

Price your product too high and you risk losing sales to competitors offering something (at least in your customer’s eyes) seen as similar, but cheaper.

On the other hand underpricing doesn’t just fix your product’s perceived value position at a lower level (making it damn near impossible to raise prices later).

A Premium Product Strategy Is About More Than Price

Pricing something higher isn’t just about how much you charge. It’s not even about perceived value.

It’s about the whole customer buying experience. Namely, before, during, and after the transaction.

Finally, understand that customers want you to exceed their expectations, and not just kick it up a notch.

Your sole purpose is to justify premium pricing in terms of function, features, and flavor. It should exceed expectations offering imperceptible details that have never before existed.

What kind of details? Details like macarons sprinkled with 14K gold dust.

Say what?

Does all this attention to detail make the food taste better? Of course not.

But when you’re paying for premium food products, it’s what’s expected.

It’s the same reason why expensive shoes come with fabric bags to protect them. Or how some eyeglasses have had cases that look more expensive than the spectacles inside.

Those small details matter. All this reassures your customer they’ve made the right choice.

Premium level food products are premium because of the following:

  • A premium marketing strategy
  • Branding & packaging
  • Customer service
  • Advertising
  • How your website looks and works
  • The voice answering the phone

Sure, these are all details that shouldn’t directly influence the quality of your product offering… but they do.

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