When it comes to the value of your products or services, perception is everything. This is because value is tied to meaning, and the same product can mean different things to different people. It’s all a matter of perception.
Luckily there are things you can do to influence that perception…and increase your product or service’s value in the process. If you can convince people that your product is worth more than an apparently identical offering from a competitor, many will happily pay more for it.
How can you do this? Here are five ideas:
1. Change its name. Make sure your product’s name sounds appealing, descriptive and exclusive. If I was selling “Vanilla Scented Candles,” changing the product name to “Heavenly French Vanilla Scented Candles” might add some panache. More expensive products often sound more expensive!
2. Upgrade its packaging. Does your product’s packaging say “luxury” or “cheap”? Packaging is one of the first things that separates $20 scented candles from those being sold at the local dollar store.
For service businesses, “packaging” can be conveyed in other ways, such as how the service provider dresses or how the website is designed. For example, if you offer lawn mowing and other yard maintenance services, you could have your crews show up in sharp-looking uniforms. It’s a simple upgrade that would make the service seem more high-end.
3. Change its pricing frame of reference. You can compare the price of your product to more expensive alternatives (such as a home manicure kit versus a professional manicure) or an irrelevant other item (less expensive than your daily latte!). You can raise the price, knowing that in some markets people assume price reflects quality, or avoid mentioning price altogether, and get people to focus on something else.
4. Make it seem scarce. I’ve noticed that Zappos does this. It seems like no matter what shoes I like best, they always recommend that I ORDER NOW because it’s one of the last ones in my desired size and color that’s in stock.
5. Add in altruism. Studies have shown that many consumers say they’ll pay more for a product if it supported a cause. It’s the “buy X and we’ll donate $ to a recognized good cause” pitch.
By influencing how people feel and think about your offerings, your marketing efforts can have an outsize impact on perceived value, and therefore the price that customers are willing to pay.