The Marketing Strategist:
What Does It Take to Command a Price Premium?
April 10, 2014
Today’s buyers are looking to save money while also maximizing value. Does this mean that even the strongest brands are competing on price? According to the results of the recently published ITSMA Professional Services Brand Study results, buyers are still willing to pay a price premium if they perceive that a solution provider has industry or domain expertise specific to their needs. 81% of the study respondents say that they would be willing to pay a price premium for technology and consulting services providers that have extensive experience and/or solutions designed for their particular industry or function. This finding highlights the importance of creating and communicating industry and/or functional expertise, especially via thought leadership, when marketing and selling professional services.
Buyers are also willing to pay a price premium when they perceive a reduction in their expected risk, whether through outcomes-based contracts or a stellar reputation backed up with references. Technology certifications are less of a draw.