How to Increase the Perceived Value of Your Product/Service (to Beat Price Resistance and Make More Sales)
2020 Black Friday is here…
Buyers are preparing to shop their hearts out…and sellers are preparing and hoping to have a big day and make as much profits as possible.
I know that a lot of businesses want to creatively tie their products and services into the Black Friday frenzy, and hope to cash out as much as possible. Even those that don’t sell physical products.
But if you ask them, you’ll find out that their best strategy is…you already know: reduce price drastically!
What if there are better ways to cash out during this Black Friday period OR any other period for that matter, other than cutting out your profits?
Well, there definitely are
And one is to increase the perceived value of your product or service.
This way, you wouldn’t have to cut your price; in fact, you can increase your price and your prospect would still be happy to pay for what you sell.
There are several ways to increase the perceived value of anything, but the most obvious one is to convert your product/service into an irresistible offer.
Unfortunately, a lot of people confuse products or services with offers.
Perhaps the usage: “I offer car rental services” or “I offer building materials for sale” is what’s causing the confusion…
But when it comes to selling, your product is just your product, while an offer is a combination of your product/service AND other things that sweeten the deal…including bonuses…and even things like payment plans, discounts, free trial, guarantees, etc.
But you can start with adding premiums or bonuses (more products and/or services) to your core product/service.
Increasing value with premiums/bonuses
I now follow Russell Brunson’s rule of making your offer worth, at least, 10x the value of the money you’re asking from your prospect.
That is, if you want to sell your product or service for $100, your offer must be worth at least $1,000.
“But Oludami, I sell female wristwatches/cars/houses/lands/insurance/legal services/etc., so how do I make it 10x the value of the asking price?”
1. It doesn’t have to be actual value, but perceived value. The “original” value placed on most PROMOS you see is usually more of perceived value, and not actual value. This works well because you can put whatever price you like on what you sell.
2. Where simply putting any value you like on your product isn’t possible (maybe you sell a commodity – something that has a price range that everyone else sells it), the best way to add premiums is something I learnt from Steve Larson: every solution creates a new set of problems.
Simply ask yourself; “what new problem would my product/service create for the buyer?”
Once you find an answer, provide new solutions to the new problems and they can be your premiums and bonuses. This way, you’ll even be able to charge more money than your competitors are charging.
Let’s take a wristwatch for example: when someone buys a new wristwatch, what are the new potential problems that come with owning a new wristwatch?
Firstly, they might be worried about how long the battery would last. Can you offer extra batteries as free bonus?
They might also be worried about scratches. What if you offer an external glossy coat on the steel bands or a little screen protector for the watch face, or even a case (as in the case of smartwatches) as bonus?
And what if you offer for free a small box in which they can keep their watch after they put it off? How about a small soft napkin for wiping the watch clean at the end of the day? (Both of which I once did for my fashion ecommerce brand.)
As for band/clasp durability problem, what if you offer free replacement chain or leather bands for the watch?
They might want a matching bracelet to look even better when dressed. What if you offer that as bonus? (Something I also once did!)
Getting the wristwatch they just paid for is another new problem. What if you offer free shipping?
If you bundle some of these with your watch, don’t you think you can increase the perceived value to 10x your asking price and even sell it higher than your competitors?
Thinking from the angle of “new problems” is one great way to create premiums that will enable you to sell your product for more, or at least, not have to cut out your profits – especially if your premiums are digital.
Sometimes, all you need is creativity.
I once got stuck while creating an ad campaign for a secondary school, and all I could come up with as the offer was “educational consultancy”.
The campaign worked like crazy, generating over a hundred leads, a few of whom actually changed their children’s schools to ours – giving us over 60x ROI in the long run.
The only limit to creating an irresistible offer is the one in your mind!
If you can think out of the box, then you can stop competing on price, and yet outsell all your competitors, combined.
Cheers to creating better offers than cutting prices!
Meet the Author
Hello! I’m Oludami Yomi-Alliyu. I'm on a mission to help driven entrepreneurs grow their business and attain freedom through consistent, profitable sales. This is why I created the Septuplar Sales System, out of my experience turning around my business failure and now consistently getting returns of over 5x my ad spend.Learn more