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Episode from the podcastImpact Pricing

Memecast #27: Perceived Value is the Only Value that Matters in Price

Released Wednesday, 6th October 2021
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There's really only two basic types of value that customers can get. And that's real value and perceived value. Real value is after they've bought the product they're using it.
How does it truly impact their life? How does it really make a difference or solve their problems or yield results? 
That's real value in the world of B2B. We could think of real value as economic value. How much more money does it make or save the customer? That's real value. However, before somebody buys the product, they don't really know the real value.
“Perceived value is the only value that matters in price.” -Mark Stiving
In fact, nobody really knows how much value any specific customer is going to be able to get from any specific product. What that means is that before somebody purchases our product, it's all about perceived value.
What does a customer believe they're going to get after the fact? What we need to be thinking of in terms of setting prices or communicating value to our marketplace is making sure our buyers maintain the highest level of perceived value possible from our product. 
Now I'm a huge proponent of creating products that have real value and then making sure we communicate that value to our customers. So their perceptions are really close to reality. 
We hope you enjoyed this podcast. If you see have any questions or feedback please email me [email protected]
Now go make an impact.
 
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