The reasons people pay more for products and services are important to everyone in sales, and equally important to the negotiator. When negotiating, you must ask for what you want, and that often means demanding a price for a particular product or service. If the other side does not want to pay what you are asking, it is up to you to illustrate why the price you have set is reasonable. There are many various reasons people will be willing to pay more for a certain product or service. Here are five of those reasons you might want to consider mentioning the next time you are in negotiations. Look at the product or service you are bargaining over and determine how these five reasons can assist you with asking for a higher price.

1. Popularity. People are influenced by what they deem popular. Fashionable items they see on television, in the movies, or about town are influential. People think if it is popular, it must be good, and it must be worth more. They want to be in the “in” crowd and are willing to pay to be there.

2. High Quality. This is sort of a no-brainer. If something is of higher quality, or perceived as higher quality, people are willing to pay more for it.

3. Environmentally Friendly. This is an area that has been growing, and as companies become more conscious of environmental issues, we see more “green” products and services. Many people and companies are willing to pay a premium for those products and services from companies that are environmentally friendly, either by the way the manufacture products or by the way the give back to environmental causes. A third-party beneficiary can influence why people will pay more, regardless if it is an environmentally friendly beneficiary or another charitable cause.

4. Scarcity. Supply and demand shows us that anything considered scarce is considered more valuable, regardless of its functionality or other factors. If something is hard to get because it is scarce, people will pay a premium to own one.

5. Ease or purchase and ownership. If a company is easy to do business with and causes few headaches for the buyer, they will be able to demand higher prices. People pay extra for things that are easy and cause them less grief. This includes warranties and customer service after the purchase. There are many ways you can make it easier for the consumer or purchaser, and each thing you do to make it easier adds value and therefore is a reason a person will pay more.

This article basically scratched the surface to get you thinking about why people pay what they do, what they will pay more for, and what you can do to illustrate why they should pay more for what you are offering.