Pricing and value can be a tricky minefield. What is perceived as valuable for one person can have little or no value for another. This story illustrates the different perceptions of value from totally different perspectives and lessons we can learn about pricing and value.
The £2k gown
I was stunned.
She pulled out a screwed-up grey bundle from her rucksack and proceeded to unravel it.
It was her ball gown costume.
The very same costume that took 6 weeks for one of my talented sewing ladies to make from scratch to her exact measurements.
Made from £100 worth of quality thick taffeta-like fabric.
Where I had added lace embellishments and spent ages pressing the creases out of the full 4 metre taffeta skirt.And hung it carefully on the rail for her to try on at our costume call and for her to take home and look after until it’s required in show-week.
In a rucksack?!
Screwed up ball
“You’ve screwed your ball gown up into a ball?” I asked.
“It’s a neat ball” she responded.
No payment = no value
Maybe she doesn’t know how to care for a ball gown.
Or perhaps because she hasn’t had to pay for it (c. £2k for a custom made to measure gown) and it’s been made by volunteers, it might be she thinks that it cost nothing and has no value.
I see this happens in businesses too and I’ve been guilty of this practice in the past.
Pricing work low to attract customers
Pricing work low (or for free) thinking this will be attractive to customers.
But it only ends up attracting low value customers who don’t value what you do, and they end up being difficult and/or screwing up your hard work into a ball that leaves you feeling devalued.
Perceived value of high cost
When you pay a perceived high price for courses, services and products, you treat them with respect, value them and do whatever is necessary to make the most of what you’ve paid for, so you get the results you were hoping for.
How do you know if your prices are too low?
Look at the quality of your customers and how they respect and treat you/your products.
Conversely, if your prices are high and you’re not attracting customers, then maybe your positioning is out of sync and not portraying the matching perceived value.
Pricing Value Positioning
For example, if your website says you’re a million-dollar business and your website footer says ‘built for free by woobly’, then there’s a mismatch.
I help clients position their products and services so they are perceived as high value (when they are). If you’d like my input then let’s talk. Set up no obligation call.