Close your eyes and imagine a person sitting down to a lobster dinner. Can you see it? Good.
Now what was your person wearing? Suit? Cocktail dress? Or t-shirt and jeans? What was the restaurant like? Fancy or hole in the wall?
We consider lobster to be “special”, expensive, fancy. Therefore I bet most of you imagined this dinner in a high-quality setting. But did you know that it wasn’t always this way? In the 17th century, lobster was fed to prisoners and servants. Even 200 years later, lobster cost less per pound than Boston baked beans and was given to cats.
So how did it go from cat food to a fancy food?
Scarcity and rebranding my friend, yes that’s right and the value or perceived value soared!
You see value is all about your customer’s belief in a product or service to meet their needs. And this belief, will impact the demand and pricing.
“There is no truth. There is only perception” ~ Gustave Flaubert
Top Reasons Customer Pay More for the Same Products
- Easier to buy
- Arrives faster
- Brings prestige – elite brands
- Lower cost of ownership
- Friendly customer service
How can YOU leverage your customers’ perceived value to your benefit?
TIME – customers value their time above all else. Why shouldn’t we it’s the one thing we can’t get back. So focus on time-saving or convenience.
PRICE – Premium pricing makes it seem more desirable. Example Apple consistently charges more which makes the consumer think there is a higher value/quality.
REPUTATION – Partner with trusted brands, rely on testimonials – stories of satisfied customers and make customer service a priority. No matter what the customer should walk away with a positive experience.
CUSTOMIZE – where you can. Knowing what a customer perceives is value is ideal. We all have a choice in who we decide to do business with, right? And choice is the purest expression of free will. However, be careful with too many choices. Choices will capture our attention but if there’s too many we get confused and a confused buyer, doesn’t buy.
What is the value you offer?