Ever wondered how the hell someone could charge SO MUCH MORE for a product or service that they’re offering than other seemingly comparable ones being offered by their competitors? How can it be? Aren’t they the same exact thing being offered? The truth is the key to anyone being able to pull this one off.
Price represents the value that someone is willing to pay for something. When there is no differentiation between products/services being offered then buyers in a market tend to buy from the lowest priced sellers of the item/service for sale. The reason why is because they don’t have any other information on which to anchor value on.
If all things were equal then there really would not be a reason for anyone to pay more for said item/service. The item/service is looked at as a commodity, which generally means that if there is no difference the lowest price prevails untill the supply dwindles and at which point if there is a high demand for the low supply item/service then price is generally driven up by this price to supply ratio.
The other thing that can allow price to be set higher is to manufacture false scarcity or perceived quality differences or bundled offerings. The more unique your offer seems, the lower the likelihood it can be directly compared to anything else, which then suggests the lower the supply of the unique item, therefore a higher price point can be easily justified.
Have you ever paid more for a product or service while full well knowing that there was a lower priced comparable available? If you said yes then its likely that the reason you paid more was due to higher perceived quality of the item, or perhaps it had more benefits for the money you spent or maybe it was because there were limited amounts available for purchase.
Regardless of your reasoning it was the perception in your mind that allowed you to be ok paying more and its understanding these factors that allow the seller to charge more. The sooner you can figure out how to manufacture these circumstances then the faster you can start charging higher prices for whatever it is you’re offering.
This applies to the seller of goods/services and employees as well. Once you fully understand value and the factors that are comprised therein then you’ll have unlocked a very powerful concept to unlocking your own wealth worth potential.
From now on start considering how to build more value into whatever you offer and you’ll find that its worth goes up almost automatically. Always think about value and you can’t help but make more money.
Remember, value is nothing more than the price someone else is willing to pay in exchange for the good or service being offered.
If you make whatever it is you’re offering more valuable than the money being spent then you’ll be farther ahead of most competitors and I can guarantee you, you’ll always be able to charge more than any of them could hope to.
Spend time thinking about this in your endeavors and you’ll find the success you’re after.
Whether you agree or not…let me know by speaking your mind below