On July 3, 2011 by Anand Subramanian. · 2 comments so far
Why do people buy your products or services? What drives them to write a cheque to you?
I believe that perceived value, rather than price is what drives sales of most products and service.
When we first started sending out proposals and financials for our services to clients at ayruz web holdings, our financials were fairly straight forward. In most cased, financials were sent through single line emails such as
SEO: Rs. X / Month (Suggested campaign for 6 months)
But these days, when you ask for a financial from my firm, you will most probably receive a document attachment with detailed information on the work and its cost. such as
- Keyword Research
- Conversion Optimization
- On-Page SEO
- Off-Page SEO
- Reporting and Analysis, etc. etc.
But then work we do is still the same as previous email, but we just realized that perception changes with the second style and it helps clients know the work put into their website.
Perception of value is a funny business. If I showed you two developers who charge $15 / hour and $50 / hour, you would most likely assume that the the second developer charging $50 / hour offers a higher quality of service. They maybe not be providing a better service, but since they charger higher, it is perceived that they do a better job.
Perceived value can best be explained by the Prussian King who facelifted the value of humble potato. Check this video for more on that
But ultimately, if you cannot match your end product or service to the value perception you provide your prospective clients, you are looking for trouble 😉