Yesterday, my wife Barbara received an email from a friend of ours from Scotland. She asked my wife to do a favor for a friend of hers. It involved buying a pair of shoes (boots), which, if purchased in the States, would save $100. The boot was priced at nearly $500 before the savings. Barbara did as she was asked, and everyone seemed happy.
This 365 Marketing Tip is sponsored by:
Not long after the purchase, my wife spotted an advertisement that appeared to offer the same style boot … which was selling for less than $100 … without any special discount. When I heard this, I began to wonder why some people would gladly pay $500 for an item that, in all likelihood, could be purchased for $100?
The answer is clear: People buy what they perceive to be valuable and what satisfies their particular wants and desires. Some people, (most people) purchase products and services based on their own shopping criteria.
Same style. Same feel. Same look. But are these boots really the same? For an extra 400 bucks, I would like to believe that there is actually a difference between these two boots. (I am confident there is, but you can never tell for certain these days. The proof is in the wearing.)
Message: I want you to price your product or service based on your criteria. Do not fall into the trap of matching prices of the cheaper vendor. If people see value in your service, they will work with you (not everybody). This woman could have bought a similar shoe for $300 less (taking into consideration the discount.) Many women probably did lean toward the less-expensive model, but most women stick to their value demands and prefer to do business with Rag & Bone. Similarly, many people will prefer to do business with you … some will not. Hold your ground people. Get up. Get out. And find the people you can help.
I have an offer for you today you can’t refuse. Send me an email at mike@mikemarchev.com and I will send you a free marketing report. Your success won’t come by accident. Let me help you become the exception.
2 thoughts on “Stick to Your Value Proposition”
Mike: Great article. I shudder violently when I see “we match any offer” type of promotions from travel professionals. Why compete in a race to the bottom? ~ Richard
Why do women pay so bloody much for a Louis Vetton or Coach bag? Not because the materials used cost that much. No it’s because of the “value” perceived by owning one of those over priced pieces of cowhide. 😉 If they like the product, want the bragging rights associated with owning that product, they’ll pay the price. So definitely, turn yourself into a Coach bag and price yourself accordingly. 😀