Every entrepreneur wants to receive more profits for selling their products or services. Of course, one way is to improve on various qualities of a product to make it more valuable and, as a result, more expensive. However, it is possible to earn more without changing much. Every product or service has its perceived value, and you can increase the price with the help of intelligent marketing. By simply using a high-quality Facebook cover design, you can make your products look infinitely better and convey a more refined and expensive feel.
The Power of Perceived Value
Apart from having a literal value and price, each product or service also has its perceived value. All customers have certain expectations towards different products. For example, people can easily pay more for an item with a well-known brand name, even though there is a similar product of much better quality and at a lower price. Even when looking at a shelf with a bunch of products while grocery shopping, you would usually assume that a more expensive and visually appealing item is better and worth its price.
To put it short, every product or service has a certain value in everyone’s mind, and it can be drastically different from its actual value. Therefore, if you want to charge more for your products without actually paying more for their production, you should work on creating this illusion.
How to Enhance the Perceived Value of Your Products
Now that we know how different clients can perceive various products and services, it is time to look at some tips on increasing their perceived value. By following this simple advice, it is possible to increase the actual prices of your products without drastically changing the manufacturing process or other factors.
- Choose a Different Perspective
Sometimes, naming things differently can change the clients’ perception. By making the name of your product more appealing or seemingly better, expensive, luxurious, etc., you can simply increase its price as well without receiving any backlash. Try replacing ordinary words with neologisms to make your products sound more modern and topical. Simply rephrase some things. For example, there is a cereal company that reframed its ordinary cereal pieces as diamond-shaped. They did not do anything apart from paraphrasing. You can simply turn a cereal piece to be a diamond instead of a square, but it still sells better. And not only do the sales go up, but you can increase the price and still enjoy the same sales.
Another trick to sell services better is changing their format. For example, you can sell a book for 15 dollars or an educational course for 99 dollars. People love courses, and there is high demand for easily digestible information. You can create a course in a series of Facebook posts and sell it for as much as you want because it has a high perceived value.
- Tiered Pricing
Selling products or services in different price categories helps with creating an image of great value. You can sell a regular product and its “supreme” or “premium” version next to it. However, it is not difficult to create an enhanced experience for your clients. By adding some premium features to a more expensive version of your product, you can play with the prices to a certain extent. You can offer exclusive packaging, additional bonuses, or services. If you are selling books, throw a notebook or a bookmark in there to create a nice bundle. For educational courses, you can add personalized consultations with tutors. There are numerous possibilities to enhance the pricing without much effort.
Simply Increase the Price
Of course, you cannot increase the price dramatically for no apparent reason. But simply increasing the price, especially if your product is not the most expensive on the shelf, can influence the perception of your clients. If your product has a certain price, it must have a special formula, high-quality ingredients or materials, etc. People often view the cheapest option as a low-quality one, so offer them a decently priced item to deliver great value. Or you can slap the “Limited” sticker on your products, and people will definitely consider buying them before it is too late.
Products and services can cost as much as customers are willing to pay for them. Of course, if we are talking about world-famous brands, they can set any prices, and people would still buy their products. But smaller brands can also change the perception of their items and services. With the power of paraphrasing and reframing, much be done to make people look at your products differently and pay more. Change the name a little bit, add some exclusivity, and you are all set.
Infuriatingly humble organizer. Entrepreneur. Zombie guru. Professional creator. Future teen idol.