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….