Perceived Value?
Perceived Value?

I had an interesting experience with pricing and perceived value today and I’d love your opinion. I’ve just significantly lowered the prices at leadslab.com – I’m offering the exact same quality, and mostly the exact same leads (I’ve added some things, taken away others).

I did some studying on pricing this summer and I heard the same thing over and over: Perceived Value Rules. People don’t always trust something they pay less for. I know that’s true – it is for me anyway. I expect to get what I pay for, and that doesn’t always mean paying less.

As soon as I re-launched the site with the new lower prices, I got inquiries from people wanting to know if the quality would still be as good, and how did we fit in with competitors? They’re more expensive, so are their leads better?

Here’s the thing – it’s the same product, just a lower price. My reasoning for this was that it’s been a tough year for so many people financially, and the price matters – maybe now more than it has before. When I run sales, people jump all over the lower priced offers, so I thought maybe having lower prices all the time would be meaningful.

I’d love your feedback on this.

What about your business? I think in networking, the perceived value is often us. Not the price of getting started, or even the ongoing costs. Sure, some people will be able to afford to start a business, and others won’t, and some will be able to spend a few hundred dollars, and not a few thousand, but I think people often make a decision because of who introduces them to a concept.

I don’t think what they’re looking at is how successful you are – but more likely WHO you are – how you treat them, how you talk to them, what you offer in terms of support, what’s your energy and enthusiasm level.

I remember years ago when I was building my first (of two) networking businesses and I got an appointment to meet with a wealthy developer who was very open-minded and entrepreneurial. He was a friend of people I knew, so he agreed to sit down and hear about my business and see if he was interested. I was really nervous. I was worried about what to wear, so I consulted my mom, whose fashion sense is impeccable – she looks better sitting around the house than most of do when we’re going out for an occasion!

She helped me pick out clothes and then I wanted to run my approach by her. I did, she thought it was good, but she looked at me and said: Kiddo, your pitch is good, but they’re buying you. It doesn’t matter what you’re offering, be yourself, be confident and show ‘em your stuff. If they don’t like you, what you’ve got is irrelevant.

I thought of that again SO many times over the years. It’s really true. Sure, you need to be offering something of real value (at least I do!), but as long as that’s solid, who you are is the first thing someone sees or hears. You can probably get around that in the beginning, but surely not long term. In the networking business a lot of the perceived value is YOU.

You’ve probably heard the cliché: You can’t say the right thing to the wrong person, or the wrong thing to the right person. It’s really true, and it should be a comfort, because it means you won’t blow it – so don’t worry…

I’d love to know what you think about this – so, TELL ME! Thanks….

Network Marketing Perceived Value
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4 thoughts on “Network Marketing Perceived Value

  • September 29, 2009 at 8:24 pm
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    Hey Amy, I absolutely agree with you! It’s all in the relationships! If you do not develop a good relationship with someone, it doesn’t matter if you are giving them something for free, they won’t value it because they don’t value you. Once you have “proven” yourself from a relationship standpoint, I think you can sell eskimos snow! – If they trust you and value your opinion, they will buy what you have to sell.
    As far as lowering the prices for leads – I think that is great – I would just put something on the website stating that these are the same leads, same quality, but because you value the relationships you have with your customers, and the economy is what it is, you are offering an opportunity to get the same great quality leads at a lower price – maybe not forever, but for a time. Thanks for the great article!
    .-= Jan´s last blog ..Patient Newsletters – Does Anyone Really Read Them? =-.

  • September 29, 2009 at 9:01 pm
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    This has been so true for me…I’m like you when something is lower priced I tend to think of it as lower quality.
    The relationships I have get my foot in the door, so to speak. A bit like an interview! When I’m really being myself, I’m comfortable knowing I bring integrity to the working relationship.
    Thanks for putting it in such simple and straightforward terms…it’s good to keep thinking on it.

  • September 30, 2009 at 5:01 am
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    Amy this is REALLY good information & it’s sooo TRUE. I have to agree it is about relationships. People can read right through a person & they can tell if you are real or not when you speak to them about what you are offering. And I can understand your reasoning for lowering the prices on your leads. Your customers will remember this because not only did you lower the prices on the leads so that more people could grow their business & get a quality lead but because of this you will have faithful customers. You are building a relationship with them because you took notice of a need but at the same time offer something of value. Good article.

  • October 1, 2009 at 3:34 pm
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    Amy,
    You are so right! Just reading your post, and the messages you sent me at gibLink makes me want to go right to your website and sign up! It’s clear that you have integrity, and that can be very refreshing in the ultra-competitive world!

    Thanks for sharing, and I’m checking out your site now.

    Dana Tisdel
    GTM: http://giburl.com/fnxnye

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