Motivation Blog

  • Perceived Value Vs. Actual Value Back

    In sales, the difference between Perceived Value Vs. Actual Value can be the difference between generating a sale or getting passed by. 

    The other day I purchased a meal at a Colombian restaurant, they served me a huge plate of food and the food was amazing!  In addition to my main plate they provided a few side dishes as well.  When I received the bill I was shocked, it was only $7.50.  The reason I was shocked is because the perceived value of the meal was so much higher, to me the meal should have cost $15, more than double.  The restaurant is able to do this because they provide lower cost foods, but large quantities to create a high perceived value.  With these low cost, high perceived value meals, it allows the restaurant to sell more alcohol, their highest profit margin. 

    A higher perceived value offer allows for a stronger call to action in your sales & lead generation efforts.  It allows for increased profit margins because you can ask for more money or up-sell.  It also helps differentiate from a competitive product and it can help create urgency.

    If somebody offered you $1,000 dollar bill to call them, would you?

    The size of your offer matters. If you don’t beef up your offer, what incentive are you giving people to call you.. We’ll give you 10% off.. well what’s 10% off? Off of what? What’s the value of that? Give people a big reason to call you! Give people an even bigger reason to purchase from you!

    Dec 12, 2016
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