The Power of Perceived Value: Why Customers Pay for Convenience
People don’t really pay for value; they pay for perceived value. Let me explain. Take a look at this image... The price of a whole watermelon and a glass of watermelon juice is the same. And if you aren’t savvy, you might assume both products share the same value. But that’s not actually the case. That’s the power of perceived value. A glass of watermelon juice and a ball of watermelon, both sold at the same price, $4, don’t have the same value ideally. But when you leverage the power of perceived value, both are placed on the same pedestal in the customer’s mind. Now, let me break it down for you. When you (the customer) see a whole watermelon, what you really see is the product that contains what you want, the juice. But in the back of your mind, you’re also seeing the pain, the stress: carrying that heavy ball home, washing it, slicing it, deseeding it, blending it, straining it, and then finally drinking it. The time, energy, and stress of going through all that just to...