We’re here today talking with authority marketing specialist Tavis Bucklin about value. When you think about how you price your products or services do you base it solely off your competitors price? What should you be doing and how can you increase your prices while making your customers and clients even happier than they are right now?
-My first question for you Tavis is; what goes through a customers mind when they decide what they are willing to pay for a product or service?
Tavis- We may not always notice, but there are two parts we consider when placing a value on something.
We have to take a look at a couple of things.
First we have Practical Value this is what your product or service does. Your coat keeps you dry and warm. That’s it’s function.
Then we have Intrinsic Value this is the unseen perceived value that is created largely by positioning or promotion. This would be the extra cost you pay for a name brand coat.
The combination of the two makes up the Total Perceived Value.
This is something we see this every day. Brand names can charge more and we are glad to pay it.