Tuesday 10 January 2012

Small Business Advice - IncreasingThe Perceived Value of Your Product or Service

Small Business Advice - IncreasingThe Perceived Value of Your Product or Service

Small business advice:Be it online or offline, small businesses often show hardly any faith in the quality of their service or product. Instead, they tend to shift their focus on the limitations and lower their prices.

It is a natural insecurity that can lead to disastrous financial results because lower prices cripple your return on investment.

Be certain that, you will make sales if you research the marketplace, locate a need and provide a quality solution. Do not let insecurity overshadow the blood, sweat and tears you expended on the business. In it's place, the focus should be on building your credibility and displaying it on your site.

Consider the following:

If your product is outstanding, then why sell it for a nominal amount? Sell it at a higher price to build credibility. This increases the perceived value because people associate higher prices with better quality.

Let’s take a look at professional services based on an hourly fee. If I write an e-book on Internet marketing for attorneys or accountants, the price I charge is going to be based on the conversion ratio.

These professionals are particularly time conscious since they bill by the hour in their own practice. If my book promises to get them 10 clients each month producing $50,000 in revenues, the book is extremely valuable to them. If I charge $19.95, my credibility goes down the tube.

Why would someone give away such valuable information for such a cheap price? On the other hand, if I charge them $599.99, the price adds to the credibility of my claims.

1 comment: