I’ve been looking into buying wireless noise-cancelling headphones recently and I’m at a crossroads.
I could either buy a pair for under $100 by an electronics company, Anker, that I respect for their other equipment.
Or, I could buy a set by Bose for over $300, which are known for their quality in audio electronics.
Both claim to do similar things, look similar, and have great reviews on Amazon. But they are clearly different products.
I’m the kind of person who likes to buy things right, not twice. I’d rather have fewer things but better quality.
And while I don’t have any particular need for the more expensive headphones, they are probably the ones I’ll buy.
Why? Because I expect them to last longer and deliver better sound—even if I can’t see that from the way both products are described online.
A few insights come to mind:
- Some people (like me) prefer to buy the best of a category they can afford because they tend to last longer and deliver a better experience—therefore being less expensive and better in the long run.
- Price is a signal—and usually a decent one—for a product’s quality.
- When the stakes are high, most people won’t settle for anything less than the best they can find and afford. People with real pain don’t buy cheap painkillers.
- Even when the stakes aren’t high, quality buyers will often still choose quality over price.
- Premium buyers tend to be easier to please and are less price-sensitive, making them good clients to attract.
- If you want to attract people who prefer quality, and you plan to deliver on that promise, you must price at a premium to align with their expectations.
Whenever possible, you should aim to be the premium provider in your category.
Not only will the higher prices allow you to earn higher profits, you can also reinvest more into making your products and services the best they can be.
You’ll also attract better buyers in the process.