Perceived Value is what consumers think your product is worth to them.
Learning this skill will help you outshine your competitors every time
And also get more customers from your social media posts and ads.
Here’s an example to help you understand what perceived value is:
You make some money and want to invest so you contact a Realtor.
The amount of money you have to spend is N2.5 Million Naira and he gives you two options:
- 1 plot of land in Eko Atlantic for N2.5M
- Or 1 plot of land in Mushin for N2.5M
We both know which one you’d choose 😂
I mean, who would think twice about such an incredible deal?
The only reason you wouldn’t want to buy it is because it’s too good to be true and you’d be scared of being scammed.
And if the realtor can convince you that the land is legit and they’re probably just doing a bonanza sale for the next 24 hours…You’ll take it.
You won’t even think about negotiating the price or postponing the payment to a later date.
Because you believe the amount of value you’re getting from the Realtor is worth much more than the amount of money you’re paying them.
And that feeling right there
Is exactly what you want people to feel when they see your posts about your products or ads.
That said, here are 𝟓 𝐖𝐚𝐲𝐬 𝐭𝐨 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞 𝐓𝐡𝐞 𝐏𝐞𝐫𝐜𝐞𝐢𝐯𝐞𝐝 𝐕𝐚𝐥𝐮𝐞 𝐨𝐟 𝐘𝐨𝐮𝐫 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐬
- Improve your packaging:
Tacky packaging, low-quality pictures, and poor colour coordination reduce your prospect’s perceived value of your product.
Here’s an example of what I mean:
Here are two brands of bottled water. One costs 350 Euros (N138,405) and the other costs N200.
One is packed in glass and adorned with diamonds and the other is packed in plastic.
- Give something away for free:
Everyone loves free stuff!!!
When you sell something that is sold by a lot of people, it can be very tempting to reduce the price of your product to attract more customers
This is a terrible way to do business because when someone else reduces their price, you’ll have to reduce yours again and it just goes downhill from there.
Giving away something for free is a great way to beat your competitors.
Here’s an example:
Fred is selling a TV on Jiji for N50,000 (his profit per Tv is N15,000)
He has like 20 other people selling the same TV for the same price so he makes like 1 or two sales per week.
Fred gets an iron for N1500 and an extension box for N500 a
And he gives these things away for free on each purchase.
So Fred has his TV, Free Iron and Free extension box for N50,000
And other people just have the TV for N50,000.
If you were on Jiji and you saw Fred’s offer against the others, which would you go for?
- Give Personal Support:
This trick has become very popular in the information marketing niche.
Here’s an example to explain what this means:
I have a course on Facebook advertising that sells for N35,000 and one of the major attractions it has is the fact that after paying for the course,
My students are added to a private support group where they can ask me questions and also get help when they need it.
Having some form of follow up/ support plan for your customers to ensure they get the best results from your product ,
It helps to increase the perceived value of your product.
- Add a 100% No Questions Asked Guarantee
There is this peace and feeling of safety that comes with knowing that if anything goes wrong with a purchase you made….
That you can always return it and get your money back.
I know not every business can practice this for certain reasons but if you can, you should.
- Introduce Scarcity/ Exclusivity:
This is one of the simplest and most effective ways to increase the perceived value of anything you sell.
After paying for the course, my students are added to a private support group….
Where they can ask me questions and also get help when they need it.
Having some form of follow up/ support plan for your customers to ensure they get the best results from your product helps.
Scarcity enhances perceptions of expensiveness and desirability.
No matter what the price, people are more likely to purchase the very last available product,
Or jump on the soon-to-expire deal.
Making your product exclusive and only available to a limited number of people also increases its perceived value to your target audience.
If you found this helpful or have any questions, please let me know in the comments.