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.
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 value 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.
But remember this: people will not continue doing business with suppliers if they do not feel they are receiving the desired value. To get paid top dollar you have to be on the top of your game.
Mike Marchev has plenty of stories, strategies and tactics to keep you on top of your game.
Mike will be conducting his 5th annual Travel Sales & Marketing Business Development Cruise, sailing the Freedom of The Seas from Ft. Lauderdale. Email him at firstname.lastname@example.org for complete details. Five cabins are still available.
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