This is how you get the price your product or service deserves

10, 2021

9 min read

Opinions expressed by Entrepreneur Contributors are their own.

Do your prospects see the value of your product or service? Have you done everything to increase the perceived value of your product or service? When you make it your driving force to bring benefit to your customers, you create a great experience for them and success for you.

What is perceived value?

In his book Value-added salesTom Reilly calls value: "What someone gives up and what someone gets for it." And this perceived value describes the appearance of things. "It is largely sensory: how something looks, sounds, feels, smells and tastes."

In other words, the perceived value of your product or service makes your customers feel comfortable buying from you. It makes them feel comfortable that the decision they are making is the right one.

Business Dictionary defines perceived value as "a customer's opinion of the value of a product to him or her". It may have little or nothing to do with the market price of the product and depends on the product's ability to meet its needs or requirements. "

How do you demonstrate to your potential customer the ability of your product to meet “their needs or requirements”?

Related Topics: 5 Strategies That Will Help Customers To Trust Your Brand

They establish the value of your product or service

Right now, one or more of your potential customers are wondering if they should buy your product or service. It's an emotional experience for them. And did you know that when she evaluates your product or service, she has a conversation with herself?


She wants facts and reasons to justify buying your product or service. And not just for herself, because ultimately she has to justify it to a friend, boss, or spouse.

1. Focus on the outcome that customers are looking for

A great way to increase the perceived value of your product or service is to focus on the result that your customers are looking for. For an organizer, this can mean, for example, that more people attend the event. And a hotel may want to increase room occupancy.

So don't focus on your sales needs, but rather on the buying needs of your customers. Focus on the benefits of your product or service. You do this by selling a solution.

When we say "selling solutions / benefits, not features," it means that everything you sell has to solve a problem. Only when your product or service solves your customer's problem does it become a solution.

This not only gives you a competitive advantage. It improves your relationship with your customers and allows you to demonstrate your worth.

You can further prove your worth by exceeding a customer's expectations. Find out what motivates them and go beyond what the competition has to offer.

Tom Reilly tells the story of a driver who exceeds expectations by tailoring his route to the convenience of his customers. He reports about the man: “I want to make it easier for our customers to receive our deliveries. Other drivers won't do that. "

This driver knows what result his customers want and he makes it a habit to deliver that result. That way, he creates a better experience for her.

2. Increase Perceived Value With Social Evidence

Another way to increase the perceived value of your offer is through social proof. Social evidence comes in many forms: testimonials, case studies, or logos of companies you've worked with on your website.

Using testimonials is a popular way to show social evidence. A testimonial is a great way to make the buying process easier. It offers perspective. You show prospects that people are happy to do business with you. If those happy customers trust you, they can trust you too, which will lead to an increase in conversions.

Even if your prospects think you're biased, they'll assume your customers' words are true.

When using testimonials, it is a good idea to include a photo of the person making the testimonial. Research shows that people like to look at other people's faces. If you can, include a decent picture with the testimonial.

Adding an image to the appropriate testimonial also increases the "truthfulness" of the claim, as researchers have shown that people believe the claim is true when an image is paired with an claim.

Related: Increase Your Perceived Value With Social Proof – And Demand More

3. Provide contrast

If you have ever compared one thing to another, or one person to another, you have used the principle of contrast. When we say that a certain woman is beautiful or a certain man is handsome, it is compared to someone else.

This principle was popularized by Robert Cialdini in his book Influence. Contrast is the use of comparison to form perceptions.

In other words, the principle of contrast affects the way people see the difference between two things shown one after the other. “Put simply, if the second point is quite different from the first, then we will tend to see it More different than it actually is, ”said Cialdini.

In a study cited by Cialdini, college students rated a picture of an average-looking person of the opposite sex as less attractive after first looking in popular magazines.

In another study, male students assessed the picture of a possible blind date. The male students who rated the picture while watching "Charlie & # 39; s Angels" rated the blind date as less attractive than those who rated it while watching another show.

Compared to the beauty of the "angels", the blind dates seem less beautiful, less desirable.

What does this mean for marketers?

Marketers can use the principle of contrast to their own advantage. You are comparing a poor quality product to the one you are trying to sell. Some marketers display products whose price range is beyond the reach of the potential customer. This makes their products appear reasonable, a tactical way to defend the value and price of their own product or service.

For example, real estate agents use the contrast strategy by showing buyers a rundown house or a house over the buyer's budget before showing the house they want to sell.

In this way, the broker gives the buyers something to compare the house or property to.

You can also use the principle of contrast by comparing your product or service with competing products. And show how buying from you gives them better value for money.

4. Add scarcity to your product or service

Scarcity is a big part of why we buy. And when you add scarcity to your offering, you increase its perceived value.

Scarcity is a situation where you have a limited number of resources and a greater demand for that resource.

People like to have something unique. Something that no one else has.

Tell people your product is limited, or only for a limited time, and they will want it more.

For example, when you're doing a launch, add a deadline. Once the deadline is reached, the product will be removed. Or you have a discount where the price increases after the deadline. Some marketers offer bonuses that expire after the deadline.

What you are doing is stimulating passive perspectives that are closer to acting. Since people have a natural fear of loss, if they don't act now, make your potential customers think that if they don't act now, they will miss out. And they'll feel terrible.

5. Focus on the experience

Some marketers appeal to consumers by keeping their attention on money. However, bringing a customer's attention to the experience they get from interacting with your product can lead to a long-term emotional connection with your product or brand.

In their study, Stanford University professor Jennifer Aaker and her co-author Cassie Mogilner said:

"Since experience with a product tends to encourage a sense of personal connection with the product, enabling time (versus money) usually leads to more favorable attitudes and decisions."

Aaker and Mogilner argue that enabling time while consumers are reviewing a product leads them to focus on their experience with the product, which affects their personal connection with that product.

However, for high-priced products such as luxury items that reflect social status, focusing on price can be effective, especially for materialistic consumers.

Aaker and Mogilner's view is based on a series of experiments they conducted to see if the mention of time (versus money) changes the way consumers rate products.

When we need to make decisions or evaluate products, emotions from previous experiences influence how we make decisions: our experiences, feelings, and beliefs influence how we buy. Hence, it is a surefire way to get customers' attention to the time they are spending on the product in order to build their business.

Sum up

As you increase the perceived value of your product or service, you usually improve conversions. And your customers will feel comfortable when they buy from you. And feel good when you feel you are getting good value.

Give your customers the result they want. And give yourself a boost in conversion.

Related Topics: 7 Ways To Add Tremendous Value To Your Business

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