Running a business today has taught me one crucial lesson – customers will pay more when you make their lives easier. Think about it: Amazon Prime isn’t cheap, but we happily pay that annual fee for the convenience of two-day shipping and easy returns. It’s not just about the products anymore; it’s about the experience.
Uber Eats perfectly illustrates this principle. We all know the food costs more on the app than at the restaurant, not to mention the delivery fees and tips. But after a long day at work, who hasn’t justified those extra dollars for the convenience of having dinner brought right to their door? The premium can be 30-40% higher than dining in, yet the platform continues to grow.
The convenience premium isn’t just for big tech companies. Look at your local dry cleaners offering pickup and delivery services, or boutiques creating personal shopping experiences through Instagram DMs. These businesses aren’t just selling products or services – they’re selling time and peace of mind.
Consider local grocery stores that launched online ordering and delivery during the pandemic. Many kept these services and now charge premium prices for them. Their customers gladly pay extra to avoid the time and hassle of in-store shopping. Similarly, mobile car wash services charge more than traditional car washes but are thriving because they come to their customers.
Here’s what I’ve learned about the convenience-revenue connection:
People value their time more than money
Reduced friction leads to repeat purchases
Convenience creates customer loyalty
Higher prices are acceptable when paired with exceptional service
Subscription models turn convenience into recurring revenue
The key is identifying your customers’ pain points and solving them. Maybe it’s complicated ordering processes, limited payment options, or inconvenient operating hours. Every friction point you remove is an opportunity to increase both sales volume and pricing.
Remember: You’re not just selling products or services – you’re selling a better, easier way of doing things. That’s what customers are really willing to pay for.