Perceived Value: High Price or Low Price

Since I started loving marketing I always pay attention to random things that make people tick. One of those things is pricing.

There are a few theories on pricing products and services. One is that you price low to get more customers and build your pipeline. The other is price high, work with a select group of people and make more for working less. Either works, it just depends on your own personal style and lifestyle preference.

I’d like to think that I am in the middle, I don’t want to be the most expensive, but I don’t want to be the cheapest either. But that’s also how I like to shop. Think about when you go and buy something.shopping

The other day I went into a store to pick up a basic electronic piece. There were six or seven versions of the same product but in price ranges from nineteen dollars to seventy-nine dollars. I thought this to be a significant price range for what I was looking for, but being the middle shopper that I am, I went with the middle price range. I figured the cheap one was too cheap, and probably wouldn’t be as good as the middle one, and the higher one had too many extras that I didn’t need.

So, who are you? I know some people always go for the most expensive and I know others who always go for the cheapest. Perhaps, you don’t even look at price at all, there are those kinds of people too – they need it so they buy it.

Look at how you shop for things, I can almost guarantee the same will be true for how you work with people who are service oriented. More than likely people will judge you by the same means as well.

It’s important to know where you stand with the price point on the service you offer.

Regardless, price says a lot about you. Think about how you view the cheapest product, or the most expensive one?  I know that I tend to spend more on my jeans than any other piece of clothing, and I don’t have too many jeans but the ones I do have I love and treasure are the ones that I paid more for. Those clothing pieces I truly value, the cheaper ones that I picked up on the fly aren’t kept around as long, and I am not as worried about getting ruined or messed up, but you better believe I am more protective over the higher priced pieces that I own. And, do you think I feel better when wearing those pieces – you better believe it.

Think about it. Have you splurged on a piece of jewelry or clothing?  If so, when you wore that how did that make you feel? The same will be true for your services. If someone is paying you more money for your services than someone else in your industry, do they expect more from you? Probably so, and that expectation alone could have all the difference in their outcome.

Now I am not saying to go out and raise your prices because honestly that’s a bunch of baloney too that everyone who has really high prices tells you to do, what I am saying is to charge what you worth, believe in your value, and you’ll soon find that others will believe in you too.

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