So does price really influence perceived value?
It’s a question that I asked in a recent survey where I’ve had 245 responses, and that was actually the question.
Does price influence perceived value?
Here’s the answers.
80% said it does sometimes
16% said it does all the time.
And that leaves only 4% who said it never influences perceived value.
So you’ve got 96%, saying always, or sometimes that’s a pretty big number, right?
So if price does influence the value that someone perceives that you’re bringing to the table, wouldn’t it make sense that you spend a fair bit of time making sure that your price is influencing your value in the right direction?
So I’ve been listening to some podcasts recently, and a number of interviews done by a guy called Peter Crone.
And they call him a mindset architect, he kind of helps you redesign your mind and really live up to your potential fascinating guy, I’m loving the things that he does.
And I jumped on his website and was having a look at his pricing.
And he’s got a three-month program that really helps you reset and reframe your mind.
And it’s a retainer-based fee, and it’s $25,000 a month, US Dollars.
And it’s like fruit.
So initially, I get a bit of that ‘price shock’, oh, my goodness, that’s a lot of money.
But then when you think about the results, and the outcomes that he’s providing, he’s getting people to literally redesign their mind which can change their life, then it’s pretty powerful and compelling.
And when you couple what he does, with the outcomes and the results he’s getting, and admittedly, he’s working with some, some really high performing athletes and superstars and all of that.
But the work that he does to completely put them in a different mental space, and the results they then get and achieve after that, you know, $75,000 for three months is almost insignificant.
Now, I’m saying that with a bit of tongue in cheek, because I don’t for a minute, think that sort of money is insignificant.
Or Seth Godin, you know, world class marketer.
I’m sure most of you have heard of him.
So I was looking at what he’s speaking fees are.
And he’s with a Bureau and it has the price range on the Bureau’s site.
And the price range says, ‘Above 100,000 USD’.
Now, this is to do keynotes.
And I thought, fruitcake, that is a lot of money.
But you’re not paying him for the hour. You’re paying him for the years and years of experience and insights and wisdom that he can bring to an audience and the transformation that he can literally provide them.
So when you’re able to look back, and yeh it’s a big price tag, likewise, with Peter Crone.
These price tags are ginormous, but the change and the transformation that they carry with them, that’s why that price tag is so great.
Now, imagine if you were getting a keynote speaker to your next session, and it was the same audience, and their fee was $500?
What do you think the difference in the transformation might be?
I’m not saying, what is the difference.
I’m saying, what do you think, because this is perceived value?
Or what if there was a mind coach, and they were going to do a three-month program and the retainer each month was $500.
How differently do you perceive the outcome will be compared to someone that charges USD 25,000?
Now, whether that’s in the same magnitude, or whatever, what it shows is that price plays a massive role in perceived value.
So when you are looking at the pricing within your business, make sure that you’re not being too cheap and underselling the value that you bring and that you’re able to deliver.
And make sure you’re probably not too expensive that you completely become unaffordable, and nobody signs up.
But there’s got to be that point in the middle where that price represents incredible value.
People are going to pay attention because they’re paying a decent price to actually be working with you.
And it makes people think yeah, this is really worthwhile because you’ve delivered on the value that you’ve promised at the beginning.
Anyway, I thought it was really interesting.
I thought the results from my survey where 96% said value is influenced by price.
So whatever you do that is up to you but always remember You are Valuable!