Remember the Perceived Value of Goods

perceived value

“Nothing will teach you more about perceived value than taking something with literally no value and selling it in the auction format. It teaches you the beauty and power of presentation, and how you can make magic out of nothing.”  –  *Sophia Amoruso, Nasty Gal Vintage*

Everyone places a different value on a product, even if the accompanying price tag is practically slapping them in the face. While you should be accounting for any corresponding costs when pricing your products, you’ll also want to be cognizant of perceived value to your customers. In other words, customers are generally looking to fulfill multiple needs when purchasing a product. For instance, while they may buy a sweatshirt to stay warm, the might also be pursuing the product because of its style. The customer will be considering this added value when they’re determining the proper price for your product. You should be, too. The perceived value can also apply to the pre- and post-sale experience. For example, many consumers enjoy camping in front of an Apple Store in anticipation of a brand-new phone. The event and collective excitement will add value to the device, and these attributes are valued differently than the way you’d value the phone’s basic functions. Therefore, when pricing your products, you’ll want to research and list the various “values” that your products will provide to customers. If you found that your products provide values outside of their basic, standard functions, you can consider boosting the price tag. Of course, to make up for this hypothetical financial discrepancy, you’ll want the entire shopping journey to be reflected in this added value. Therefore, it’s in your best interest to include the proper imagery, photos, colors, copy… these factors will all play a role in the perceived value of your product.