Our offices have now re-opened, but please call us before visiting.
3rd September 2021
Here’s a thought for you, what makes you feel better when you purchase something, getting a nice product on the cheap or buying something of quality that’s more expensive? It’s interesting how different people react but understanding how your product or service is perceived can help a lot when deciding how to price it.
You could decide you want to “pile it high and sell it cheap”, sell masses of volume but make smaller margins. This model is used all the time on the high street, retailers such as Primark are a good example. Or you may prefer to create that feeling of exclusivity and luxury around what you sell, charge a premium price and sell less but make the same profit.
A Gucci handbag or a pair of Nike Trainers do the same job as ones bought from a supermarket for example, but the expensive branded goods make people feel better about what they have and they perceive they have something that is desirable and worth more, but is it?
It’s all about value perception. If you see something that looks expensive, it feels good quality and it has a hefty price tag then you will most likely assume it is a well-made and worth paying that bit extra for. If the marketing of that item also supports that ideal, then you will be even more convinced that what you are buying is of a greater value.
Think about how adverts on social media and TV show you images of say an ice-cold G&T being sipped by a clear blue swimming pool. The image conjures up in your mind what you would feel like if you had that product, and it makes it more desirable. In fact, it is the feeling of having the G&T that you desire not necessarily the actual G&T itself
Think about that concept when marketing your own products and services, look at how you can sell the result of what you are providing rather than the actual thing itself.
By creating a feeling of value around your service or product you can demand a higher price for it. Instead of selling yourself cheap and having lots of customers you could in fact charge more and have less customers but much better-quality ones.
And guess what less customers mean less hassle and more time for you so it’s a win-win!
If that sounds like something you’d like some help with then book a call with me and let’s see if I can help you.
Read more about our business mentoring.
have you read our previous post?