Perceived value: How to sell expensive products
Your company does not sell expensive or inexpensive products. It sells solutions; moreover, differentiated solutions. This is the first thing to keep in mind when thinking about the perceived value of a brand, product or service. As long as you think that a customer’s value perception is based on the monetary value of an item, selling expensive products will be impossible. The goal here is to appeal to perceived value to sell your products.
It is very common for microentrepreneurs—even the most experienced ones—to think that being a leader in low prices is the best option. The problem is that your supplier is not always as cheap as your competitor and the distribution also makes your costs high. To be a leader in low prices and have a higher profit margin, you would need to reduce costs.
But how can you avoid falling into the trap of fighting with your competitor to have the lowest price? Will customers want to pay more when there’s a cheaper option? There are many questions that arise in the mind of the entrepreneur. It is possible to have a higher price and to make sales steadily. In fact, a lot of people do and are not going broke!
The reason for this is what we call perceived value.
What is the perceived value:
You’ve probably looked through a shop window and thought a price was too expensive for the product offered. You may also have euphorically noticed that the price was too cheap. On both occasions, the astonishment was because you understood the benefits of the product. These benefits informed the decision on whether it was worth paying the price. This is a perceived value.