A colleague of mine in the Midwest is just starting out and has a lot of questions about how to market his video business to high end brides. One of his recent questions to me was about perceived value and how to raise it. I thought I’d share on the blog what I shared with him. Many of you may already know this, but if not, I hope it helps you in your business.
There are three main areas in which you can raise your perceived value:
- Raise Your ACTUAL Value. First and foremost, make sure you’re producing a quality product and providing quality service. Once a client gets past all the sales and marketing hype, you have to deliver. If your product can’t back up your hype, go back to the drawing board.
- Price = Perception. People associate quality with price. If you have a low price, you’ll have a low perceived value. A high price will result in a high perceived value. Even if the quality isn’t really there. Most of the expensive name brand products you buy at the store are made of the same material or ingredients as the generic stuff, but because they are more expensive (and have fancy packaging) people assume it’s better. If you say your prices start at $5,000 or $10,000, clients will look at you like a $5,000 or $10,000 vendor and just take for granted you’re worth it. (The hard part, of course, is finding the ones willing to invest that much in you).
- Branding. I can’t say enough about branding with regards to perceived value. There are so many ways to define “brand.” But, one of the simplest is just the feeling or thoughts that people have about you when they hear your name or see our product. What do you think about when you hear “Ritz Carlton”? Now, how about “Motel 6”? So many things make up your brand: your website, biz cards, brochures, the work you do, how you dress, how you communicate with clients, etc. They all should flow together and support the image you want to have of your company.
Remember, the optimum word here is “perceived.” How will people perceive you or your business when they first meet you or come in contact with your website. In the end, make sure the perception is fulfilled in the product and service you provide. If not, you won’t last very long.