Understanding Perceived Value

Whether online or offline, small businesses oftenthe price adds to the credibility of my claims.
show little faith in the quality of their service orDon't worry about charging too much for your
product. Instead, they tend to focus on theservice or product. You can always lower the price
limitations and lower their prices. This naturalto ascertain the best figure for converting clients. It
insecurity can lead to disastrous financial resultsis much more difficult to raise the price for current
because lower prices cripple your return onclients.
investment.Consider offering a free trial or consultation. This
Rest assured, you will make sales if you research theincreases the perceived value of the service or
market, locate a need and provided a quality solution.product. Prospects will view you as credible because
Do not let insecurity waste the blood, sweat andyou would not give something away if it didn't work.
tears you expended on the business. Instead, youIf you know your stuff, you should be writing and
should focus on building your credibility and displayingpublishing articles on the Internet. Unlike an
it on your site.advertisement, articles build an incredible level of
Consider the following:credibility for authors and sites. If sites are willing to
If your product is the greatest thing since slicedpublish your articles, you must really know your area
bread, why are you selling it for a nominal amount?of expertise, right? You prospects will think so.
Sell it at a higher price to build credibility. ThisInclude as many testimonials on your site as possible.
increases the perceived value because peopleThe comments of previous purchasers will raise your
associate higher prices with better quality.credibility.
Let's look at professional services based on an hourlyGive people a strong guarantee. For instance, most
fee. If I write an e-book on Internet marketing forprofitable e-books sites offer an unconditional
attorneys or accountants, the price I charge is going365-day refund policy. Yes, the customer has a full
to be based on the conversion ratio. These365 days to ask for a refund. Will some people take
professionals are particularly time conscious sinceadvantage of this? Yes, but who cares? An e-book
they bill by the hour in their own practice. If my booksite requires little overhead, so the refunds are not
promises to get them 10 clients each monthadding much cost to your business compared to the
producing $50,000 in revenues, the book is extremelyincreased sales you will get because of the
valuable to them. If I charge $19.95, my credibilityguarantee.
goes down the tube. Why would someone giveDon't kill your business by lowering your prices. If you
away such valuable information for such a cheapare offering quality, charge accordingly and provide
price? On the other hand, if I charge them $599.99,proof of your credibility.