Price is objective: an item costs what it costs. Value, on the other hand, is subjective. It’s something each potential customer views differently. However, that’s not to say you can’t influence the value a potential customer perceives your product to have.
The goal of most marketers advertisers, and salespeople is to raise the customer’s perceived value of a product or service above the price for which it’s worth. If the customer thinks the item you’re selling is worth more than what you’re asking for it, they’re probably going to buy. How can you raise the perceived value of what you’re selling? Here are nine easy ways:
- Raise Your Price
Judging the value of certain products can be difficult for customers, especially when they don’t know much about them. In such cases, they often base their idea of the product’s value on the price, assuming that a higher price tag must reflect higher value. Take wine, for instance. Even people who don’t know much about wine will often associate a higher price with better quality.
- Don’t Mention the Price at All
Conversely, you can often increase the perceived value of a product by encouraging customers to think about anything but how much it costs. Instead, create the idea that your product is more important than its price. Jewelry is an excellent example. People often sell jewelry using words like “timeless” or “iconic”—suggesting that the product’s real value is intangible (and therefore worth practically any amount of money).
Rebranding can raise customer perceived value for products that may be unpopular or controversial. It involves highlighting a different aspect of the product that is more likely to be viewed positively (those of you who have seen the first episode of Mad Men will no doubt recall Don Draper’s infamous “it’s toasted” moment). This strategy can make people use an entirely different metric to evaluate the value of what you are selling.
- Make Your Offer Seem Rare or Time-Sensitive
People almost always want something more when they think they’ll be the only ones in their social circle to have one. They also want something more when they believe that the opportunity to acquire it is about to vanish forever. Phrases such as “limited time only” or “while supplies last” play to these feelings by creating a sense of urgency that inspires people to buy.
- Make a Few Guarantees
Customers want to know a product will do what the advertisers promised. To justify this commitment, you can offer a guarantee. Tell them you’ll give them their money back if the product doesn’t satisfy them, and many more will buy. You might assume that a lot of people will return the product too—but if your product works, most of them won’t bother with the inconvenience.
- Supply Testimonials
In addition to guarantees, customers trust other customers. When people see that someone else has already had a successful experience with your product or service, they’ll be more inclined to try it for themselves. It’s the whole philosophy behind apps like Yelp.
- Offer Free Trials
If you want to maximize the trust a potential customer puts in your product, give it to them for free—for a little while. Trials are wonderful because they encourage customers to experience how useful your product or service is, but there’s another important reason. Once the trial period is over, it’s much easier for the customer to simply keep your product and pay for it than it is to return your product and find something else.
- Compare the Price to More Expensive Options
You can still raise your price to suggest that you’re offering a premium product, but you shouldn’t necessarily make it the most expensive option on the market. Instead, be sure to point out competitors whose products cost more. Your customers won’t see your product as cheap; they’ll see it as cost-effective. You’ll encourage them to think they’re getting more for their money.
- Advertise Discounts
Lastly, you can advertise the original price of your product and compare it to what you’re currently asking. For example: your product used to cost $100, but now it’s only $75. Even if your product only costs $30 to make, this will make people feel like they’re getting something worth more than what they’re paying. You still get to make a substantial profit, and the customer feels like they’ve scored a bargain. Everybody wins.
Learning how to affect value of your private label skin care products has more to do with psychology than it has with economics. Use the above suggestions, and you should have no trouble raising the amount of value your customers associate with the goods or services you offer. Try out these tips, then leave a comment and let us know how they worked!