It’s not that great of a deal! At least that is your perspective on something you don’t need, want or think valuable. Have you gotten something sent to you that looked at first like a great buy, but then when you looked at it more closely you realized it was not so great? Maybe it was a coupon about saving on a cruise. Or you are a member of a travel club that has all these added fees when you schedule to take a trip. I recently received a special coupon. It was an acceptable special until I saw in the fine print that there was a coupon redemption fee. A what!
A person becomes interested because he wants it or someone he knows wants it. There is an emotional appeal. Then, he has to recognize the value. Even if he wants it like crazy, he won’t buy it if he thinks it isn’t worth your price. If he wants it and thinks it is valuable, he will buy it. The value placed on something is relative to the perceived benefit.
Many people find value in memberships. Sam’s Club and BJ’s Club make good money from memberships because they attract customers who can benefit from saving long-term when they buy in bulk. For people who travel frequently, travel club memberships might be the way to go to save because they get peace of mind that they will be staying in a place that has been “rated” to a standard. No bugs or mold are worth it!
Think of the cupcake wars. Baked goods were traditionally a homemade treat. You could buy store-bought baked goods relatively inexpensively compared to baking them yourself. But you settle for something not so gooey and fresh. The trade-off is that gooey and fresh can be very time intensive. We live in a world where we don’t want to spend several hours baking. We are too busy. The result of wanting things at our fingertips: we can now see cupcake stores in plazas scattered all over town. You can buy gooey and fresh without slaving for hours around the oven! And when people are willing to stand in line to buy a $3 cupcake, they believe there is something of value they want in that cupcake. They are buying convenience and time, along with the quality of fresh-baked goodness. And if they share that time with a friend or family member, then the value is even greater.
Just like the price of a $3 cupcake might be right under certain circumstances, people will buy a membership or use a coupon because they see the benefit. What benefit do you provide in your product or services that people would be willing to buy? That benefit has more value than the item. That benefit is often the deciding factor in people’s purchase. After all, that is why so many people will pay more for a brand item when a comparable generic item is available. They incorporate the value of trust, consistency, quality, or something else in that brand. The value may be thought of consciously or subconsciously, but it has been hammered into their mind. Or as Waltor Landor quotes “Products are made in the factory, but brands are made in the mind.”
What value do you think the benefit you offer is worth? Do your customers see the benefit and associated value? You should have a specific target audience that you market to. What they see and how they think they will benefit can make or break a sale!