What is your product or service worth? Most people would answer that question in fairly concrete terms. However, your product or service is worth absolutely nothing and is priceless at the same time!
A product or service is only worth what people will pay for it- bottom line. If everyone decided not to accept printed/minted money, our very currency would be worthless. At the same time, if a mega superstar wears a fifteen-dollar t-shirt, that shirt, at auction, may bring in thousands.
What makes consumers pay a particular price? Supply/Demand + Perceived value! This can include the quality and/or quantity. Packaging makes a huge difference in what someone will pay. Does an item look luxurious? Are famous people lining up giving testimonials? Does it last longer? Do I get 20% more with this brand than others at the same price? Is there limited supply?
Will different people value things differently? YES! The same item that may bring in $100 with one group may only bring in $59.95 with another. This is why it is so important to identify the best target market for a product or service. A business owner may make a wise decision in marketing to a group that buys luxury products, however, if he/she would make more revenue with a slightly more cost-conscious crowd by selling three times as much, selling at a lower price would be the better choice.
How to create brand value:
Marketing materials & packaging- reflect the value that your wish to attract. Selling $50/bottle lotion? Make sure that your packaging looks rich and luxurious. Want to sell bargain lotion? Use simple, generic-looking packaging that accentuates the amount contained in the bottle/jar.
Associations- become associated with other brands/ people/ items that are familiar to your target market. Testimonials are fabulous tools!
Demand- Does everyone seem to want it? Is there limited supply? Accentuate these points.
Convenience- people will pay for convenience.
Other benefits (not features)- other things that will make the consumer’s life easier, better, etc.
Remember, it is up to you as a business owner to create value in the mind of the consumer!
Strictly Necessary Cookies
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.