Friday, May 16, 2014

Perceived value.

It was 7:51 in the morning, on Friday January 12. A man at a metro station in DC positions himself against a wall, behind a basket and begins to play the violin. 

He's wearing regular denim jeans, a long sleeved t-shirt and a hat. 

He played the violin for about 45 minutes. During this time 1,097 people passed by. A few people gave him money, a few stopped to listen to for a bit then kept walking - but no one applauded. 

He collected about $32 in 45 minutes. 

The man in the denim jeans, t-shirt and hat was Joshua Bell; an American Grammy Award-winning violinist. 

The best part of this experiment done by the Washington Post was that 2 days prior to playing the Bach pieces at the DC Metro station, he sold out a theater in Boston where seats averaged about $100. 

So why would a Grammy Award winning violinist only make $32 for a 45 minute performance? It all comes down to perceived value. 

You see... Joshua Bell did not look like he was worth $100 per seat. He looked like just another street performer trying to make a few bucks. His value diminished because of people's perception of him that morning. 

What does this mean for you?

You are Joshua Bell in your business. 

People don't yet see how valuable your information, product or service really is. 

Perceived value plays a big role when trying to sell products online. You need to do everything possible to increase the value of your ebooks, courses and services in your audience's eyes. 

A big part of increasing perceived value comes down to how you communicate the benefits your product or service offers. Effectively communicating the value is one of the ways you can charge higher prices and get people to trust that what they're getting from you is worth more than what they're paying for it. 

In a future email I'll get into specifically how to get this done, but for now just understand that it matters. A lot.

See you next time...

- Hector

p.s - this is a big topic in the book. 

Pages 60 through 66 is all about perceived value and how pricing affects it.. 


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Hector Cuevas
2332 University ave.
Bronx, NY 10468, USA

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