Petrie argues that creating value for the customer is independent of the price point. A customer must perceive value whether an item is $20 or $1000. He distinguishes between a cheap, transactional item and a more expensive, investment-worthy product that lasts.
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To combat price objections, artisan cheese expert Adam Moskowitz reframes his product not as expensive, but as valuable. The superior flavor-per-bite of quality cheese provides more intrinsic value than cheaper, mass-market alternatives that primarily offer a generic 'creamy' texture.
A woodworker reframed a transaction from buying a finished product to a collaborative building experience. This shift completely altered the customer's value perception, leading him to happily pay 30% more than the original high-priced item for an imperfect, co-created result.
High prices are not inherently 'expensive'; their affordability is relative to the customer's income. For a high-earning client, a premium purchase can be an impulse buy, equivalent to a fast-food meal for an average person. This reframes pricing from absolute cost to a measure of the buyer's resources.
The expectation set by a high price can literally change how a consumer experiences a product. In one study, the same wine was rated 70% better when participants believed it was expensive. This isn't just perception; it's a self-fulfilling prophecy where price dictates the perceived quality of the experience itself.
Brands often see premium CX and low prices as a trade-off. However, consumers expect both. A Five9 report shows 72% value support quality while 45% are motivated by deals. The key is to see them as complementary expectations that build loyalty, not an either/or choice.
Many companies claim customer-centricity, but few are willing to provide value to a degree that seems unbalanced. This relentless focus on the end-user, whether in product, service, or content, is a rare and powerful competitive advantage that builds a sustainable brand.
Effective pricing is not just a number; it is a value story. The ultimate test is whether a customer can accurately pitch your product's pricing and value proposition to someone else. This reframes pricing from a simple number to a compelling narrative.
Price sensitivity decreases when customers have absolute clarity on what they're buying, when technicians present options with confidence, and when the business consistently provides multiple choices. These three "C's" build perceived value, allowing for higher prices.
Simple vocabulary changes can dramatically alter customer perception. Replace "cost" with "investment," "most expensive" with "top of the line," and "cheapest" with "builder grade." This frames the purchase around value and quality, not just price, which is a key principle taught at A1 Garage Door.
Don't overcomplicate defining value. The simplest and most accurate measure is whether a customer will exchange money for your solution. If they won't pay, your product is not valuable enough to them, regardless of its perceived benefits.
